Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has attributed the country’s rising inflation to the excesses of N27 trillion ways and means as well as N10 trillion in intervention programmes.
He stated this in his address to a CEO Forum in Lagos on Thursday.
Cardoso explained that high interest rates are driven by increased money supply and subsequent inflation, which had compelled the Monetary Policy Committee (MPC) to maintain elevated rates.
He pointed out that while he is not responsible for these decisions which are those of the MPC, Nigerians need to understand that the surge in Ways and Means and intervention programmes has consequences.
Cardoso further clarified that the MPC’s primary mandate is to reduce inflation, and its decisions are based on data trends rather than emotions.
“The MPC has made it very clear that for them the major issue is taming inflation and has also made it very clear that they will do whatever is necessary to tame inflation.
“Sadly, we have a situation where a lot of money supply went into the system. We all saw ways and means soar to N27 trillion. We saw interventions of N10.5 trillion. It has its consequences. In large respect, that is what we are paying for now,” Cardoso said.
