CBN Governor Speaks on New Exchange Rate, Economic Growth Expectations in 2025
- CBN has expressed optimism for the year and promises also forex market transparency and liquidity
- There is a strong expectation that the naira will stabilise against the US dollar in the forex market in 2025
- President Tinubu hopes that the CBN’s leadership will play a pivotal role in steering the country toward a stable and prosperous future
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has projected a positive economic trajectory for the country in the first half of 2025.
During the 2024 statutory briefing to the Senate Committee on Banking, Insurance, and Other Financial Institutions, Cardoso cited significant progress in forex market transparency, banking sector recapitalisation, and sectoral growth.
Source: Facebook
He outlined the CBN's commitment to achieving economic recovery and stability through targeted policies to foster growth and financial resilience.
Cardoso told the Senate in Abuja:
“We are closely monitoring economic developments and stand ready to adjust policies as needed to ensure price and exchange rate stability while supporting sustainable growth."
Future of naira and forex market
Leadership reports that the CBN governor also spoke on plans for the forex market and efforts to stabilise naira.
He revealed that efforts have been made to enhance forex market transparency and liquidity, noting that these efforts have contributed to gradual stabilisation.
Cardoso added that measures to ensure cash availability at official outlets are designed to boost public confidence and stimulate economic activity.
Cardoso expressed confidence that the measures would pave the way for sustained recovery, focusing on stabilising the forex market, supporting growth in critical sectors, and implementing robust financial policies.
Senate commends CBN
Reacting to the CBN governor's address, Senator Mukhail Adetokunbo Abiru, chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, commended the CBN for its efforts in stabilising the forex market and addressing liquidity issues.
He praised the bank’s measures to restore stability and trust in the financial system.
CBN policies in 2025
In 2024, the CBN implemented aggressive measures to combat inflation by raising interest rates.
The CBN is expected to maintain its stance against inflation as President Tinubu aims for a 15% inflation rate.
- January 2024: MPR stood at 18.75%.
- February 2024: Raised to 22.75% to combat rising inflation.
- March 2024: Increased to 24.75%.
- April 2024: MPR remained stable at 24.75%.
- May 2024: Increased to 26.25%.
- June 2024: MPR remained stable at 26.25%.
- July 2024: Raised further to 26.75%.
- September 2024: 27.25%.
- November 2024: Final increase of 2025, raising the MPR to 27.50%
LCCI Expectations for 2025
Legit.ng earlier reported that the Lagos Chamber of Commerce and Industry (LCCI) has cautioned business owners to brace for a more challenging economic landscape in 2025.
The chamber attributed its forecast to the likelihood of a more hawkish monetary policy environment.
In response, the LCCI has called on the federal government to increase oil production and provide regulatory support to stabilise the naira.
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Source: Legit.ng
