The World Bank has praised Nigeria’s Central Bank Governor, Yemi Cardoso, for his efforts in steering the country’s economy through critical reforms. Indermit Gill, Senior Vice President of the World Bank Group, expressed this during the 30th Nigerian Economic Summit in Abuja.
Gill commended Cardoso’s policy decisions, particularly the 850 basis point increase in interest rates over the past nine months, aimed at curbing inflation and boosting confidence in the naira. He also highlighted the political commitment necessary for implementing these reforms amidst the hardships caused by the removal of fuel subsidies.
“The Central Bank has taken bold steps, raising rates significantly to stabilize inflation expectations,” said Gill. He emphasized that for these policies to bear fruit, Nigeria must remain consistent over the next 10 to 17 years, drawing parallels with the economic transformations seen in countries like India, Poland, and Norway.
While Cardoso’s monetary policies have received positive feedback internationally, local public opinion remains divided. A July 2024 survey revealed that only 36.3% of Nigerian households supported higher interest rates to curb inflation, while the majority favored a reduction in borrowing costs.
Since taking office, Cardoso has overseen five interest rate hikes, with the latest bringing the rate to 27.25%. These measures are part of a broader strategy to address Nigeria’s inflationary challenges, particularly in core and food sectors.
Credit: Nairametrics (Text Excluding Headline)
