Cardoso: Inflation Pressures Temporary Despite Two-Month Rise
Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Wednesday said recent inflationary pressures in the country are temporary despite headline inflation rising for two consecutive months.
Cardoso stated this at the end of the 305th Monetary Policy Committee meeting in Abuja, where the apex bank retained the Monetary Policy Rate at 26.5 per cent and left other key monetary parameters unchanged.
He said although inflation rose marginally in recent months, largely due to external shocks, the MPC remained confident that the current macroeconomic environment was strong enough to support a return to disinflation.
“Although inflation has risen marginally for two consecutive months, largely induced by external shocks, the MPC recognised its transitory nature and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” Cardoso said.
According to him, spillovers from the Middle East crisis had increased pressure on energy prices, transportation costs and logistics globally, but the impact on Nigeria had remained largely muted due to earlier economic reforms.
He listed exchange rate stability, improved external reserves, stronger monetary policy transmission, a well-capitalised banking system and ongoing fiscal consolidation as factors helping the economy absorb external shocks.
The CBN governor said the committee was convinced that conditions necessary for price stability remained in place, adding that a cautious monetary stance was needed to anchor inflation expectations and preserve macroeconomic stability.
On inflation figures, Cardoso disclosed that headline inflation rose to 15.69 per cent in April 2026, from 15.38 per cent in March, driven mainly by food prices and transportation costs.
However, he noted that core inflation moderated to 15.86 per cent in April from 16.21 per cent in March, while the 12-month average inflation declined for the sixth consecutive month to 19.16 per cent.
The MPC also retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, while non-TSA public sector deposits remain subject to 75 per cent CRR.