Cardoso pledges independent, transparent monetary policy committee

By Emmanuella Opara | October 15th 2026

KEY POINTS

• -CBN Governor Olayemi Cardoso says the bank is committed to building a credible and independent Monetary Policy Committee.
• -External members are encouraged to challenge assumptions and contribute independent assessments during policy deliberations.
• -Cardoso says members receive economic data in advance and can seek additional expertise to support their decisions.
• -The CBN is prioritising transparent communication to strengthen public and investor confidence in monetary policy.

MAIN STORY

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has reaffirmed the bank’s commitment to an independent and transparent Monetary Policy Committee (MPC), saying diverse perspectives and open deliberations are essential to restoring confidence in monetary policy decisions.

Cardoso made the remarks on Thursday at the ongoing IMF/World Bank Group Annual Meetings in Bangkok, Thailand, during a discussion on central bank decision-making and communication in an era of uncertainty.

He said the CBN had taken deliberate steps to strengthen the credibility of the committee, including appointing independent-minded external members to improve the quality of discussions and reduce the risk of groupthink.

According to him, external members bring perspectives that may differ from those of internal members, who have closer involvement in the bank’s daily operations and access to its data.

Cardoso said the committee encourages members to question existing assumptions, examine available information and offer independent assessments before reaching policy decisions.

He also addressed concerns about the potential influence of his position as governor on internal members, saying he did not hold separate meetings with them to agree on conclusions before formal MPC meetings.

The governor said all members received relevant data in advance, allowing them to review the information, ask questions and conduct their own analysis before deliberations began.

He added that the CBN maintained a strong secretariat to respond to members’ inquiries and assist them in assessing policy options.

On the participation of external members, Cardoso said the bank provided them with support and allowed them to consult specialists outside the institution when necessary.

He said the CBN also organised retreats and engagements outside the formal meeting cycle, sometimes involving experts from other central banks, to deepen members’ understanding of monetary policy challenges and international experiences.

Cardoso explained that external members had been involved from the early stages of the bank’s transition towards inflation targeting, rather than being included only when policy decisions were ready for approval.

He said transparency was central to rebuilding the credibility of both the committee and the central bank, noting that external members sometimes questioned why certain information had not been made publicly available.

On monetary policy communication, the governor said the CBN sought to explain the economic conditions and considerations behind its decisions, particularly when they differed from financial market expectations.

He identified improved coordination between fiscal and monetary authorities, stronger cooperation between both sides and greater clarity in overnight financing rates as measures that had supported monetary policy effectiveness.

Cardoso also cited Nigeria’s improved external reserves, which he said had reached their highest level in 18 years at the time of the decision under discussion. He pointed to a sustained decline in inflation and continued economic growth as other developments in the economic environment.

He said the CBN’s engagement with the media after MPC meetings helped explain policy decisions and enabled market participants to understand the wider economic circumstances informing them.

THE ISSUES

The credibility of monetary policy depends not only on the decisions taken by the MPC but also on the independence of its deliberations and the public’s understanding of its actions.

Cardoso’s remarks highlight the importance of ensuring that committee members can examine economic data, question assumptions and express differing views without undue influence.

Access to information and external expertise is also important, particularly when members must assess complex economic conditions and weigh the potential effects of policy choices.

Clear communication remains another challenge for the CBN, as unexpected decisions can influence market expectations. Explaining the reasoning behind such decisions can help investors and other economic participants better understand the bank’s position.

WHAT’S BEING SAID

“I just want to emphasise something here once again. You see, for us, we were coming in at a time of crisis, and I am not just saying this as a cliché or anything like that.

“But the actions that we have taken post that time were essential to create the credibility of the Monetary Policy Committee and the central bank.

“So that’s really the background we have come from to ensure that we have another chance at building up a monetary policy committee that has credibility and to ensure that once they take decisions, there are decisions that are credible,” Olayemi Cardoso, Governor of the Central Bank of Nigeria, said.

“I don’t do that. All the data is given out to members in advance to allow them to examine the information, ask questions and conduct their own analysis before deliberations begin,” Cardoso said.

WHAT’S NEXT

The CBN’s approach will depend on how effectively it sustains independent deliberations, provides committee members with the resources they need and communicates the reasoning behind monetary policy decisions.

Maintaining transparency and consistent engagement with financial markets and the public will remain important to the bank’s efforts to strengthen confidence in the MPC.

BOTTOM LINE

Cardoso says the CBN is seeking to build confidence in monetary policy through independent committee deliberations, access to economic information and clearer communication of decisions. The effectiveness of this approach will depend on the committee’s ability to maintain those standards in practice.