By Ibrahim Modibbo

The 2025 Monetary Policy Forum, declared open by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, reinforces the apex bank’s steadfast commitment to price stability and macro-economic reforms.

The theme: “Managing the disinflation process,” resonates with the nation’s current economic realities, where inflationary pressures persist amid global and domestic shocks. The governor’s remarks reflect a balanced mix of optimism, pragmatism, and a forward looking approach to monetary policy.

His speech emphasizes the CBN’s strategic measures in taming inflation, restoring foreign exchange stability, and implementing financial sector reforms that position Nigeria for sustainable economic growth. Cardoso framed the forum as an essential intellectual platform for examining monetary policy challenges with precision. Unlike broader economic conferences, this event fosters evidence based discussions that shape policy direction. In emphasizing the need for clear communication, he acknowledges the critical role of transparency and stakeholder engagement in building confidence in monetary policy decisions.

This emphasis on dialogue is significant, particularly as monetary policy remains a powerful yet complex tool requiring careful calibration. A major take-away from the governor’s speech is his review of the economic landscape over the past year.

Nigeria has faced persistent inflationary pressures, driven by both structural challenges and monetary dynamics. As of December 2024, headline inflation stood at 34.80 percent, with core inflation remaining a major concern despite some moderation in food inflation.

The governor rightly points to domestic structural bottlenecks, exchange rate pass through effects, and energy price adjustments as factors exacerbating inflationary trends.
While acknowledging these supply-side constraints, he also recognizes the role of past liquidity injections in fueling demand driven inflation.

This candid assessment is crucial in understanding Nigeria’s inflationary progression, as it highlights the multifaceted nature of the challenge.

The governor’s remarks on liquidity injections and their unintended consequences reflect an awareness of policy trade-offs. He notes that unorthodox monetary interventions, particularly in response to theCOVID-19 pandemic, led to an excess liquidity overhang that did not translate into productivity growth.

The resulting inflationary pressures and exchange rate volatility necessitated a shift towards a more disciplined and coordinated monetary policy approach. This shift is evident in the Monetary Policy Committee’s (MPC) tightening cycle, which saw the Monetary Policy Rate (MPR) rise by a cumulative 875 basis points to 27.50 percent in 2024. Similarly, the Cash Reserve Ratio (CRR) for Other Depository Corporations (ODCs) was raised by 1,750 basis points to 50.00 percent, a bold move aimed at mopping up excess liquidity.

These decisive interventions, the governor argues, were necessary to prevent inflation from spiraling further. Counter- factual estimates suggest that without such measures, inflation could have surged to 42.81percent by the end of 2024.

This assertion stresses the importance of proactive policy responses in mitigating economic distortions.

The commitment to tightening reflects the CBN’s resolve to anchor inflation expectations while ensuring that monetary policy remains an effective tool for macro-economic stability. Beyond inflation control, the CBN has implemented critical financial sector reforms to strengthen Nigeria’s economic resilience.

The unification of multiple exchange rate windows has improved efficiency in the foreign exchange market, leading to a notable increase in remittances through International Money Transfer Operators (IMTOs).

The governor cites a79.4 percent rise in remittances to $4.18billion in the first three quarters of 2024, compared to $2.33billion in the same period of 2023.

This reform, alongside the clearance of a $7.0 billion backlog of FX commitments, has bolstered market confidence and enhanced liquidity with a rising external reserves of $40billion as of December, 2024. Another significant policy shift is the lifting of restrictions on 41items previously banned from accessing the official FX market. The reversal of this 2015 policy signals a more market-driven approach aimed at improving supply side dynamics.

Additionally, the introduction of new minimum capital requirements for banks, effective by March 2026, is a forward thinking measure designed to strengthen the financial system’s resilience. By ensuring that banks are adequately capitalized, this policy aligns with Nigeria’s ambition of becoming a $1trillion economy, reinforcing the stability and global competitiveness of the banking sector.

The governor also showcases the launch of the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy.

This initiative addresses gender disparities in financial access, empowering women through digital tools, education, and financial services. Inclusive finance remains a key pillar of sustainable economic development, and the CBN’s focus on bridging financial gaps reflects a broader commitment to equitable growth.
In a further effort to instill transparency and efficiency in the FX market, the CBN recently introduced the Nigeria Foreign Exchange Code.

This framework, built on six core principles, aims to enhance integrity, fairness, and trust within the financial ecosystem. Such measures are essential in attracting foreign investment and maintaining confidence in Nigeria’s economic reforms.

Cardoso’s speech also contextualizes Nigeria’s disinflation efforts within the global monetary landscape.

He acknowledges emerging optimism regarding potential improvements in capital flows to emerging markets, particularly as advanced economies transition toward monetary easing. However, he cautions that Nigeria’s ability to attract these inflows hinges on investor confidence in domestic reforms.

The need to deliver positive real returns on investment accentuates the importance of maintaining macro-economic stability and ensuring that inflationary trends do not erode gains.

Looking ahead, the governor stresses that the shift from unorthodox to orthodox monetary policy is crucial for restoring confidence and strengthening policy credibility. Encouragingly, early signs of progress are evident.

FX liquidity is improving, and the naira is gradually aligning with market fundamentals, creating a more predictable environment for economic activities. While acknowledging that challenges remain, Cardoso expresses confidence that Nigeria’s policies are setting the stage for sustainable economic stability.
The call for collaboration is another vital point in his remarks.

Managing disinflation requires coordinated efforts between monetary and fiscal authorities, alongside active engagement with the private sector and civil society. This alignment is necessary to anchor inflation expectations, maintain investor confidence, and ensure that economic policies translate into tangible benefits for Nigerians.

The governor reiterated the importance of a forward looking, adaptive, and resilient monetary policy framework. By prioritizing price stability, financial sector resilience, and macro-economic reforms, the CBN is laying the foundation for sustainable economic growth.

The 2025 Monetary Policy Forum thus serves as a fundamental platform for generating actionable insights that will shape Nigeria’s economic direction.
Essentially, Cardoso’s speech reflects a well calibrated approach to managing inflationary pressures while fostering economic resilience. His emphasis on disciplined monetary policy, financial sector reforms, and investor confidence corresponds with Nigeria’s broader economic aspirations. As the country navigates the complexities of disinflation, the CBN’s commitment to transparency, coordination, and policy credibility will be instrumental in achieving long-term stability.
Dr. Modibbo, a development communication scholar writes from Abuja

By Lukman Laleye Babalola

The Nigerian Communications Commission (NCC) recently approved a 50% increase in telecommunications tariffs, a decision that has sparked debates across the country. While telecom operators argued that the hike is necessary for the industry’s survival amid rising costs, consumer rights groups and labor unions see it as an additional financial burden on Nigerians already struggling with inflation and economic instability.

As the new tariff policy takes effect, stakeholders remain divided over its implications. This feature examines the reasons behind the increase, its impact on consumers and the economy, and possible ways forward.

Why Did the NCC Approve the 50% Tariff Hike?

Nigeria’s telecom industry has operated under a fixed pricing structure for over a decade, despite rising inflation, currency devaluation, and increased operational costs. Telecom operators, including MTN, Airtel, Glo, and 9mobile, have repeatedly called for a tariff review, citing the following challenges:

1. Inflation and Naira Depreciation

The cost of importing telecom infrastructure—such as network equipment, fiber optics, and software—has skyrocketed due to the fall in the value of the naira against the dollar. Many telecom components are priced in dollars, making them significantly more expensive than they were a decade ago.

2. High Operational Costs

Telecom operators spend billions of naira on fuel and electricity to power base stations, especially in remote and underserved areas. Additionally, the insecurity in parts of the country has increased operational risks, forcing companies to spend more on security.

3. Heavy Taxation and Multiple Levies

The telecom industry is one of the most taxed sectors in Nigeria. Operators face multiple levies from federal, state, and local governments, adding to their financial strain.

To address these challenges, the NCC opted for a 50% increase, rejecting an initial 100% hike proposal from telecom operators. This compromise aims to keep the industry financially stable while minimizing the impact on consumers.

Public Reactions: Backlash from Consumers and Labour Unions

While telecom operators welcome the tariff hike, many Nigerians see it as a harsh economic decision at a time of financial hardship. The Nigeria Labour Congress (NLC) and other advocacy groups have condemned the move, calling it “insensitive” and “unjustifiable.”

NLC President Joe Ajaero announced a nationwide protest scheduled for February 4, 2025, demanding the reversal of the tariff increase and urging the government to take action against rising living costs.

“The government should be reducing costs for Nigerians, not increasing them,” Ajaero stated. “This decision will only make life harder for the average Nigerian.”

Many consumers share this sentiment, arguing that data, call, and SMS rates are already expensive compared to the average income level. With food prices, fuel costs, and transportation fares rising, the added burden of higher telecom bills is seen as unfair and unnecessary.

Telecom Industry’s Perspective: A Necessary Adjustment

Despite public opposition, industry experts insist that the tariff hike is necessary to sustain Nigeria’s telecom sector. The Global System for Mobile Communications Association (GSMA) supports the increase, projecting that it will:

Attract over $150 million in new investment, boosting the industry.

Expand 4G network coverage to 94% of the population, connecting about 9 million more people, including 2 million in rural areas.

Create approximately 2 million jobs in the telecom sector.

Generate N1.6 trillion in tax revenue for the government.

Dr. Bode Ajibade, an ICT expert, believed the increase is long overdue.

“If we continue with low tariffs while costs keep rising, telecom companies will struggle to maintain service quality. In the long run, poor network coverage and slower internet will hurt consumers more than a price increase,” he said.

What’s the Way Forward? Possible Solutions

As tensions rise between consumers, labor unions, and telecom operators, some experts suggest a more balanced approach to the tariff adjustment. Possible solutions include:

1. Phased Implementation

Instead of an immediate 50% increase, the NCC could introduce a gradual increase over 6 to 12 months. This would give consumers time to adjust while still allowing telecom operators to recover their costs.

2. Government Intervention to Reduce Costs

Rather than passing all financial burdens onto consumers, the government could ease operational costs for telecom companies by:

Reducing multiple taxation that inflates telecom expenses.

Providing incentives for alternative energy solutions to reduce reliance on expensive fuel and generators.

Investing in telecom infrastructure, especially in underserved areas, to lower expansion costs for operators.

3. Special Consumer Relief Measures

To protect vulnerable Nigerians, the NCC could mandate affordable packages for:

Students who rely on mobile data for education.

Low-income earners who need access to communication services.

Small businesses that depend on telecom services for digital transactions.

If implemented, these solutions could ensure industry sustainability while minimizing the financial impact on consumers.

Conclusion: A Delicate Balancing Act

The NCC’s 50% tariff hike represents a difficult but necessary step in maintaining the long-term health of Nigeria’s telecom industry. While it addresses the rising costs faced by operators, it also places additional financial pressure on consumers who are already struggling with economic hardship.

The key challenge now is finding a middle ground—one that keeps the telecom sector competitive without making communication unaffordable for Nigerians.

As the February 4 protest date approaches, the government must decide whether to review the tariff policy, introduce relief measures, or maintain the current plan. Whatever the outcome, one thing is certain—the future of Nigeria’s telecom industry and digital economy depends on striking the right balance between business sustainability and consumer protection.

What’s your take on the NCC’s tariff hike? Should the government intervene, or is this a necessary step for industry survival? Share your thoughts.

*Lukman Laleye Babalola, Publisher Emporium Reporters online and Emporium Magazine.He writes from Abuja 08037469328. [email protected]

*BY BOLAJI AFOLABI*

Abuja, Nigeria’s federal capital city is home to Gwarimpa Estate; considered as the largest single housing estate in West Africa, and arguably in Africa. Situated in Phase 3, and sitting on about 1,090 hectares of land, the Estate, which has sprinkle of gated-estates, and open houses has the combination of many buildings with elegant architectural designs, motorable road networks, and other facilities.

Conceived and started by former Nigeria’s Head of state, late General Sani Abacha, it has various facilities including shopping malls, medical centers, resort and recreational centers, and schools. Over the years, the Estate has grown to a big community with residents from different and varied strata of the society. It is home to the bourgeois, nouveau riche, top-end politicians, government officials, professionals, and technocrats.

People in the upper-class, upper-middle class, bureaucracy, business, and more are resident there. With distance of about 45 km to the Nnamdi Azikwe International Airport, Gwarimpa, which has 7 distinct areas; called Avenues originally planned as a residential community has, in recent times witnessed some distortions. The master plan has being slightly corrupted with the influx and establishment of commercial outlets, and other business enterprises in hitherto residential quarters. In spite this noticeable drawback, Gwarimpa is one of the most sought after districts by many people including Nigerians and foreigners.

For anyone who desires to embark on physical exercises as part of healthy living regimen, Gwarimpa is the perfect location. It’s beautiful landscape, road networks, and pleasing environment makes burning of excess fats welcoming. Little wonder, daily, residents pound the streets either walking or jogging. The writer, being a keep-fit buff is not left out. Buoyed by discipline, determination, dedication, and devotion, the one or two hours daily jogging has become permanent fixture in his daily ritual. Though captured by the allure of the Estate, many residents hit the streets when the sun sets, and makes visibility clearer. Perhaps, scared of being victims of any attacks, it is only common to see residents involving in physical exercises from 7 am. However, some early risers, like the writer shrug off any fear or negative thoughts, and engage in very early hours workout daily, before proceeding on their respective official and business engagement.

Few days back, the writer discovered something unusual, uncommon but comforting. Setting out for the day’s jogging exercise, the entire streets within my Estate were lighted. Surprised about this, the comments of one of the security officers at the Gate of the Estate jolted the writer. Asked about the lighting, Mr. Joshua declared, “Oga, na Wike oooo.” Within racy minutes, with excitement written on his face, he narrated how this will impact positively on the environment, security, and living. Outside the Gate, as the race continued, it was obvious that the entire landscape had changed. With proper visibility, the beautiful aesthetics of buildings, commercial outlets, and other business centers came alive.

In the past three days; and still counting, the installation, and powering of street lights across major areas and locations of Gwarimpa has added to the beauty and allure of the Estate. In many ways, people, especially early risers and commuters exhibit quantum felicity as they move from one end to the other. Traversing through 1st to 3rd, 4th, 2nd, and 5th Avenues, the street are glittering with lightings. Importantly, the writer discovered an increase in the number of people that have joined the “early-riser” jogging train. At every turn and point along Crush Cafe to Tastia, Fidelity Bank, St. Matthew’s Anglican Church, Muslim Community Cemetery, and First Bank/Emadeb Energy/Total Station on 1st Avenue, it has been encouraging. Not forgetting junctions and intersections from Access Bank to the H-Medix/Quick Service Restaurants, GTB, and ECOBANK area on 3rd Avenue, as well as locations and streets along and around the 4th, 2nd, and 5th Avenues.

From reports, the street lightings in Gwarimpa Estate which were done by the Federal Capital Territory Administration under the leadership of Minister Nyesom Wike is in fulfillment of earlier promises to engender infrastructural development of the District. Indeed, this is laudable, and encouraging. Being a resident for some years, the writer can recall the level of fear, anxiety, worries, and despondency that pervaded the minds of people before now. With the turn of events, there are numerous positives that residents will benefit from the street electrification. There will be increase in commerce, trade, and economic activities. Just yesterday, while jogging along 2nd Avenue, a vulcaniser had already opened shop for the day. Same with few pharmacy, and supermarkets on 3rd Avenue. The number of food vendors already out around the Crush Cafe axis of 1st Avenue was surprising. The street electrification will boost security of lives and properties; improve access to health, and other services; and increase the value of properties.

While working on this article, the writer was informed that the Wike “street lighting magic” has been extended to Life Camp, Kado, and Jahi Districts; neighbors to Gwarimpa Estate. Fact is, the street electrification of these Districts are long over due. Somehow, attempts were made by past administrations. But very feeble, shoddy, and tenuous. For whatever it is, the timely completion of the installation of street electrification in these Districts epitomises vision, values, and commitment to good governance. The comments of a business outlet owner along 3rd Avenue, Mr. Peter Ogbu that, “like some others, initially I didn’t like Wike but considering what he has achieved in one year, he is now my favourite in this government,” is apposite. Alhaji Garba Ibrahim Fegge, a civil servant declared that, “the street lightings, and potable water supply schemes in Gwarimpa has shown that Wike knows the needs of people.” For Ms. Comfort Adegbuyi, a medical personnel, “we now open till late in the night at the Pharmacy I work…this is something you dare not attempt before now because of security challenges.”

The political odyssey and governance trajectory of Nyesom Wike has been classic case study of sorts. Depending on who or what is being addressed about him, he remains a prominent, and primary personality in Nigeria’s political discourse and governance discussions. Some people angrily dislike and describe him as being arrogant, loquacious, and power-driven. Many others recognize and appreciate his personality traits and leadership attributes which; they claim revolves around productivity, performance, doggedness, courage, and empathy. However, what ever divide, majority of Nigerians, particularly Abuja residents and visitors unanimously agree that he is a shining light in this administration. Little wonder, President Bola Ahmed Tinubu eulogized him at the first presidential media chat, which held recently.

**Bolaji Afolabi, a Development Communications specialist, was with the Office of Public Affairs, The Presidency, Abuja*