The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, cautioned against renewed pressure on the apex bank to return to intervention programmes previously implemented by the institution, warning that such measures distorted the bank’s financial position and weakened monetary policy effectiveness.

Cardoso spoke during the opening session of the Monetary Policy Committee (MPC) workshop held in Abuja, themed “Strengthening Monetary Policy Effectiveness Towards Sustainable Macroeconomic Stability.” He said the credibility gradually being restored to the CBN over the past two and a half years was largely due to the bank’s return to orthodox monetary policy anchored on transparency, discipline, and market confidence.

The CBN governor stated that intervention programmes implemented in the past weakened policy transmission and blurred the line between fiscal and monetary responsibilities. According to him, the apex bank would continue to focus on transparency, evidence-based policy decisions, and institutional reforms aimed at achieving sustainable macroeconomic stability.

Cardoso also noted that the bank inherited weakened institutional autonomy, reduced confidence in monetary policy, and excessive reliance on non-conventional monetary tools. He added that the foreign exchange market was previously opaque and inefficient, while weak coordination between fiscal and monetary authorities reduced overall policy effectiveness.

He, however, said reforms introduced by the current management were beginning to yield positive results, including improved liquidity management, better policy communication, enhanced transparency in the foreign exchange market, and early signs of moderating inflation.