The reforms implemented by the Central Bank of Nigeria have helped cushion the impact of global economic shocks on Nigerians, preventing more severe hardship despite ongoing external pressures, the apex bank has said.
CBN Governor Olayemi Cardoso disclosed this at the final briefing of the bank during the just-concluded Spring Meetings of the World Bank/International Monetary Fund in Washington DC.
“The decisions of the MPC (Monetary Policy Committee), as we consistently emphasise, are data-driven. They are not based on emotion but on careful analysis of available information, and we respond accordingly. I am pleased that this cautious approach has proven justified by subsequent developments.
“I would also add that if we had not taken the steps we did at the time—and if the reforms had not been implemented when they were—the outcome for the country could have been far more difficult and painful,” Cardoso stated, while responding to a question on the March uptick in inflation.
On Friday, The PUNCH reported that Nigeria’s inflation rate rose to 15.38 per cent in March 2026, reversing the recent easing trend as global shocks from the US–Iran conflict pushed up energy, transport, and food costs. The PUNCH also observed that this is the first increase in headline inflation since March 2025.
Cardoso admitted that the recent National Bureau of Statistics report “showed an uptick in inflation, which, quite frankly, should not be too surprising given the global disruptions taking place at this time. Much of this increase can be attributed to global shocks.”
He noted that it was important to remind ourselves that, up to this point, the country had experienced consistent deceleration in inflation. “We had also begun the process of reducing rates, although we remained cautious. At the time, we were careful to avoid easing too early, as doing so could expose the economy to exactly the kind of shocks we are now witnessing—and that is precisely what has happened.
“There was an expectation that the central bank, given several months of deceleration, would adopt a more aggressive approach to reducing rates.
“However, this underscores an important point: members of the MPC have access to data and insights that are not always visible to the public. This situation clearly demonstrates why there was concern about potential shocks on the horizon. We wanted those uncertainties to clear before taking more decisive action.”
In direct response to the question on inflation, Cardoso insisted that the recent uptick was largely the result of global shocks. “Nonetheless, we remain committed to building resilience and staying the course on our long-standing objective of bringing inflation down to single digits,” he stated.
The CBN boss added, “Despite current challenges, we will maintain this focus because we believe it directly addresses the key concerns of Nigerians, particularly the real impact of macroeconomic developments on everyday life. Encouragingly, stability has begun to take hold, meaning that some of the negative consequences associated with instability can now be put behind us.”
Recall that both the Minister of Finance/Coordinating Minister for the Economy, Wale Edun, and the CBN governor, Cardoso, had earlier declared that Nigeria is currently in a sound position to withstand global economic shocks stemming from the Middle East crisis or other issues.
Both men took turns reiterating this position during a press briefing at the Spring Meetings of the World Bank and the International Monetary Fund in Washington, DC, United States.
Speaking at the briefing, Edun said, “Nigeria came to this meeting with a clear message: our reforms are durable, self-sustaining. We are more resilient to global shocks, and we are focused on inclusive growth.
“Due to the reforms undertaken under the leadership of His Excellency, Mr President, Nigeria is well-positioned to withstand external shocks, such as the one we are witnessing at this time.
“Across our engagements this week, there has been strong recognition and commendation that Nigeria’s reform programme is strengthening our economic fundamentals and restoring confidence. This has placed us in a stronger and better position to withstand the ongoing situation described as the Israeli–US–Iran conflict.
“With the economy now operating a market-reflective foreign exchange regime and market-based pricing for petroleum products, adjustments are occurring relatively smoothly—without distorted controls, unsustainable subsidies, or a rapid depletion of reserves, based on the data available to the Central Bank of Nigeria.”
Edun noted that this improved resilience was “widely acknowledged throughout the week at our various meetings, including at the International Monetary Fund, the World Bank, and in our engagements with other development partners and bilateral counterparts.”