Olayemi Cardoso, the Central Bank of Nigeria’s (CBN) new governor, is shifting away from unorthodox economic strategies used in the past to a more traditional approach. At the Financial Times Africa Summit in London, Cardoso shared his commitment to using “orthodox policies” to stabilize Nigeria’s economy. Appointed by President Bola Tinubu in September 2023, he aims to address inflation and bring a predictable structure to the nation’s financial system.

Cardoso highlighted that one of his main challenges has been restoring investor confidence. He believes that conventional economic tools are essential for achieving this stability and for managing inflation, which remains high in Nigeria. In line with this new direction, the CBN has collectively raised interest rates five times, totaling 850 basis points, showing Cardoso’s commitment to curbing inflation using established methods.

Although the shift to orthodox policies marks a significant change from his predecessor Godwin Emefiele’s approach, Cardoso feels that it’s necessary for long-term economic health. He acknowledged that many Nigerians may find these policies confusing or unclear, which is why he’s dedicated to explaining his strategy in public forums and ensuring transparency.

During his Senate confirmation, Cardoso assured lawmakers that he would revise some of Emefiele’s policies, setting the stage for a more conventional, stable path for Nigeria’s economy. His aim is clear: rebuild trust in the financial system and provide a sustainable foundation for economic growth through proven, orthodox policies.