The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has described the decision to raise the Monetary Policy Rate (MPR) to 27.25 percent as a bold move.
According to him, higher interest rates, “while painful for borrowers, are necessary to curb excess money in circulation and control inflation.”
He noted that leadership is about making hard choices to secure long-term stability over short-term comfort “in moments like these.”
Cardoso spoke in Lagos at the weekend while addressing members of the Harvard Club of Nigeria on the topic ‘Leadership in Challenging Times: Restoring Credibility, Building Trust and Containing Inflation.’
He also said the CBN’s decision to implement the Electronic Foreign Exchange Matching System (EFEMS) was rooted in the understanding that trust is essential to central banking.
He said this was to enhance transparency and provide more accurate oversight of foreign exchange transactions.
He said: “Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes. Our decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in this understanding.”
