The Central Bank of Nigeria (CBN) reports significant progress in stabilizing the foreign exchange (FX) market and curbing inflation, attributing these improvements to recent policy reforms. Governor Olayemi Cardoso highlighted these developments during a meeting with scholars from the Harvard Kennedy School (HKS) at the CBN headquarters in Abuja. 
Key Developments:
•Foreign Exchange Market Stability: The CBN’s initiatives have led to relative stability in the FX market, narrowing exchange rate disparities. As of December 2024, Nigeria’s external reserves surpassed $40 billion, indicating enhanced investor confidence. 
•Inflation Control: The National Bureau of Statistics (NBS) reported a decrease in Nigeria’s inflation rate to 23.18% in February 2025, down from 24.1% in January 2025. This decline suggests that the CBN’s monetary policies are beginning to mitigate inflationary pressures. 
•Economic Growth Projections: The CBN forecasts a 4.17% growth in Nigeria’s Gross Domestic Product (GDP) for 2025. This optimism is based on reforms initiated in 2023, including the removal of the petrol subsidy and currency devaluation, aimed at revitalizing the economy and improving public finances. 
Despite these positive indicators, the CBN acknowledges persistent challenges, such as elevated inflation and the need to boost liquidity in the FX market. The bank remains committed to implementing reforms and fostering transparency through stakeholder engagement to address these issues effectively. 
The CBN’s recent policy measures have contributed to stabilizing Nigeria’s FX market and reducing inflation rates. While these developments are promising, sustained efforts and continuous policy adjustments are essential to ensure long-term economic stability and growth.
