Cardoso’s two years at CBN yield naira stability, inflation decline – CPPE

By Omodele Adigun

The Centre for the Promotion of Private Enterprise, CPPE, has said that naira stability, foreign exchange market gains, and a decline in inflation are some of the achievements recorded under the Central Bank of Nigeria’s governor, Olayemi Cardoso, in the last two years.

CPPE director, Muda Yusuf, disclosed this in a statement on Sunday.

The economic think tank said the CBN, under Cardoso’s leadership, has undertaken comprehensive reforms aimed at restoring confidence, strengthening governance, and repositioning the financial system to support inclusive and sustainable economic growth.

CPPE noted that the most significant reform under Cardoso has been the liberalisation and unification of the foreign exchange, FX, market.

According to CPPE, CBN’s reforms have resulted in transparency and credibility in the country’s foreign exchange market, boosted liquidity, enhanced institutional capacity, and strengthened financial stability.

“One of the most significant reforms under Mr Cardoso has been the liberalisation and unification of the foreign exchange, FX, market, including the elimination of multiple FX windows and reduced opportunities for arbitrage and corruption.

“Price discovery has improved, allowing for a more efficient allocation of FX resources.

“Through a mix of monetary policy tools—including interest rate hikes, liquidity management, and market reforms—the CBN has contributed to the recent deceleration in inflation and restoration of macroeconomic stability,” CPPE stated.

However, CPPE urged the CBN to ease the monetary policy rate and cash reserve ratio downward.

“Balance price stability with growth, gradual easing, and calibrate CRR and MPR downward as inflation moderates to create a more enabling credit environment; complement monetary tightening with supply-side measures to address structural inflation drivers,” CPPE added.

In September 2023, Cardoso was appointed by President Bola Ahmed Tinubu to lead the CBN.

In the last two years, interest rates have dropped to 21.12 per cent in August 2025 from 26.72 per cent.

However, the foreign exchange rate has risen from around N788 per dollar in September 2023 to N1,487.90 as of Friday, September 2025, due to currency liberalisation.