The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, says the Monetary Policy Department (MPD) of the apex bank has made valuable contributions to its landmark achievements over the years.
Cardoso said this on Tuesday in Abuja at MPD 20th Anniversary Colloqium with the theme, Monetary Policy in Nigeria: Past, Present and Future ”.
He was represented by CBN’s Deputy Governor, Economic Policy Department, Dr Mohammed Abdullai.
According to him, over the years, MPD has provided robust technical support to critical committees (1:58) such as the Monetary Policy Committee and the Monetary Policy Technical Committee.
He said that the MPD had also supported the CBN board in ensuring coherence in policy deliberation and discourse.
“The Department’s efforts have contributed to several landmark achievements, including the introduction of the Monetary Policy Rate (MPR).
“The MPR is a significant instrument for monetary policy science, replacing the minimum rate discounting in 2006, which has enhanced clarity and effectiveness of policy coordination,” he said.
The CBN governor said that the MPD also contributed to the adoption of the Interest Rate Corridor Approach, which established bounds around the MPR to guide shorter interest rates and improve liquidity management.
“It also contributed to the strengthening of the CBN’s Monetary Policy Analysis four evidence-based decision process, and enhancement of policy communication strategy.
“As we mark this milestone, it is important to reflect not only on our journey, but also on the progress we have made in recent times,” he said.
He said that the past two years had been transformative on Nigerian economy, driven by bold reforms and decisive actions that have restored confidence and made the foundation for long-term stability.
“As a result, inflation has moderated significantly to 16 per cent as of October, from a peak of 34.6 per cent in November 2024.
“This marks seven consecutive months of disinflation, the lowest in three years. Core inflation has also begun to reduce. It suggests that the cumulative impact of tight policy settings is transmitting to the economy.
“The exchange rate has stabilised, with the Naira continuing to strengthen,” he said.
Dr Victor Oboh, Director, MPD, said that the celebration of 20 years of the department was worthy .
Oboh described the MPD as adepartment that has become synonymous with intellectual rigour, strategic foresight and unwavering commitment to the core mandate of the CBN.
” I will like to express our profound gratitude to the Governor of the Central Bank of Nigeria for his exemplary leadership and unwavering support.
“These have been instrumental in shaping the strategic direction of the department.
“The MPD introduced the monetary policy range in 2006, and strengthened the policy communication framework.
“The department has been instrumental in shaping Nigeria’s transition from direct to self-remarked based monetary policy ranging.
“Its contributions during critical episodes and challenging periods such as the global financial crisis, commodity price shocks, and the COVID-19 pandemic underscore its resilience,” he said.
