Abuja: The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, highlighted the significant contributions of the Monetary Policy Department (MPD) to the bank’s achievements over the years. This announcement was made during the MPD’s 20th Anniversary Colloquium, themed “Monetary Policy in Nigeria: Past, Present and Future.” Although Mr. Cardoso could not attend in person, his message was delivered by Dr. Mohammed Abdullai, the Deputy Governor of CBN’s Economic Policy Department.
According to News Agency of Nigeria, Mr. Cardoso acknowledged that the MPD has consistently provided robust technical support to vital committees, including the Monetary Policy Committee and the Monetary Policy Technical Committee. The department has played a crucial role in ensuring coherence in policy deliberation and discourse within the CBN board. The governor praised the department for its contributions to several landmark achievements, notably the introduction of the Monetary Policy Rate (MPR), which replaced the minimum rate discounting in 2006, thus enhancing the clarity and effectiveness of policy coordination.
Mr. Cardoso further noted that the MPD was instrumental in the adoption of the Interest Rate Corridor Approach, which established bounds around the MPR to guide shorter interest rates and improve liquidity management. The MPD also enhanced the CBN’s Monetary Policy Analysis for evidence-based decision-making and improved the policy communication strategy. Reflecting on recent progress, Mr. Cardoso remarked that the past two years have been transformative for the Nigerian economy, driven by bold reforms and decisive actions, leading to the moderation of inflation to 16 percent as of October, marking seven consecutive months of disinflation.
Dr. Victor Oboh, the Director of MPD, expressed that celebrating two decades of the department’s operations is indeed worthy. He described the MPD as synonymous with intellectual rigor, strategic foresight, and an unwavering commitment to the CBN’s core mandate. Dr. Oboh extended gratitude to the CBN Governor for his exemplary leadership and support, which have been instrumental in shaping the strategic direction of the department. He highlighted the MPD’s role in transitioning Nigeria from direct to self-remarked based monetary policy and its resilience during challenging periods such as the global financial crisis and the COVID-19 pandemic.