Governor, Central Bank of Nigeria, CBN, Mr. Olayemi Cardoso yesterday assured the global investment community that the apex bank will strengthen its processes so as to sustain gains from recent reforms and confidence in the economy.
Speaking at meeting at a meeting of a the Nigerian government delegation led by the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun and international investors on the sidelines of the ongoing Spring Meetings of the IMF and World Bank in Washington DC, Cardoso stated that the “difficult reforms that have been undertaken have begun to bear fruit,” adding that “the numbers speak for themselves”, indicating positive developments in the Nigerian economy.
He highlighted the adoption of “orthodox monetary policy” as a crucial step that the CBN had “absolutely no intention of compromising on”. He stressed that this approach has enabled the stabilisation of the macroeconomy, positioning Nigeria in a “much better place than it had to have been in the past”.
This progress, he said, is reflected in “recent upgrade of Nigeria’s rating by Fitch.
Acknowledging the current period of “heightened uncertainty”, Cardoso noted that Nigeria has been in a “period of crisis”. However, he expressed confidence in the “resilience and the capacity of people and institutions” to navigate future challenges. He also emphasised the continuous learning process, including gaining insights from interactions with individuals in different geographies.
Building confidence
A key focus of the CBN’s strategy has been “building confidence and building trust”. This has been a “deliberate” effort, although not perfect, aimed at fostering greater confidence in the Nigerian currency and the country’s strategies.
Governor Cardoso reported seeing “a lot more interest in investing in Nigeria in the recent past” and is optimistic about future transformation if the current direction is maintained.
FX inflow
Addressing the need to diversify beyond oil revenues, a strategy already outlined by the Minister of Finance in his presentation, Cardoso highlighted the significant progress made in the remittance space. Initial scepticism was overcome, with monthly remittances increasing from approximately “$200 million plus on a monthly basis” to a peak of around “$600 million by August.
This was achieved by “understanding where the bottlenecks were and we did everything to remove them” and by closing the gap on different exchange rates. Engaging with the diaspora community through roadshows also yielded positive responses. The CBN has also involved the banking system in these efforts, including targeted outreach to non-resident Nigerians. Cardoso reassured that the impact of oil price fluctuations is “quite manageable”.
Looking at opportunities beyond remittances, Governor Cardoso stressed the importance of a “competitive Naira”. He described this as a “game changer” and a “great transformative tool” that has shifted how Foreign Direct Investors (FDIs) view Nigeria. He noted that investors are increasingly comfortable with the availability of a competitive currency, making business more attractive. The Governor believes that an “enabling environment” will naturally attract investments. He also mentioned a meeting with the coordinating minister and the President of the World Bank, where renewable energy was highlighted as a sector the World Bank intends to support significantly.
Commitment to Transparency
Governor Cardoso underscored the CBN’s commitment to transparency, stating, “it is very important that as a central bank, we walk the talk”. He cited the disclosure of net reserves as an example of delivering on their commitments, building confidence among investors.
He noted that the “small percentage of intervention from the central bank relative to the forex market” is a positive sign, indicating a well-functioning and transparent market. The introduction of the “B matching system” and a “Code of Ethics” were highlighted as measures to enhance market transparency and integrity. The Code of Ethics involved the leadership of banks signing up to principles aimed at preventing bad behaviour in the market.”
