In the past year, under the stewardship of Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, the Naira has faced a staggering depreciation of 51.5% against the US dollar. Official data from FMDQ reveals that the currency plunged from N747.76 per dollar in September 2023 to N1,541.52 by September 2024. Despite various interventions by the CBN aimed at stabilizing the Naira, its performance in the foreign exchange market has been far from satisfactory.

Throughout this tumultuous year, the CBN’s Monetary Policy Committee (MPC), headed by Cardoso, implemented several critical measures to combat the nation’s economic woes. Among the most significant actions was the increase of the Monetary Policy Rate (MPR) four times, bringing it to 26.75%. This decision was made in response to soaring inflation, which hit 32.15% in August 2024. These policy adjustments aimed to tackle inflationary pressures and restore economic stability.

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Adding to the complex economic landscape, the nation’s external reserves surged to a 22-month high, reaching $37.39 billion as of September 19, 2024. While this uptick in reserves presents a glimmer of hope, it has not mitigated the harsh economic realities faced by many Nigerians. Persistently high food prices and skyrocketing energy costs continue to strain household budgets, underscoring the challenges that remain despite the CBN’s efforts.

As Governor Cardoso completes his first year in office, the economic outlook appears mixed. The Monetary Policy Committee is currently debating whether to increase interest rates further or maintain the current stance.