Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says recent monetary and financial sector reforms have strengthened Nigeria’s ability to withstand external shocks and restored investor confidence.
In a statement on Wednesday, CBN said Cardoso spoke on
Tuesday at the Africa Capital Forum in London, held on the sidelines of Bola
Tinubu’s state visit to the United Kingdom.
The forum, themed “From Stabilisation to Capital
Mobilisation,” was jointly hosted by the CBN and the UK Foreign, Commonwealth
and Development Office (FCDO).
He said the apex bank has “created stronger capacity to
withstand shocks” through policy tightening and institutional reforms.
The CBN governor said the foreign exchange (FX) market now
operates with improved transparency and liquidity following recent reforms.
According to Cardoso, a new FX manual has removed several
capital control measures and simplified trade and investment processes.
Cardoso added that the bank has finalised a new payments
system vision aimed at strengthening Nigeria’s position in digital and
cross-border payments.
On the banking sector, the apex bank chief said more than 30
banks have met the new capital requirements, while verification is ongoing for
others.
“About 28 percent of investment in the recapitalisation came
from foreign sources,” he said.
Cardoso added that the development reflects renewed
confidence in Nigeria’s financial system.
The governor also noted that diaspora remittances have
increased, contributing to the diversification of the country’s foreign
exchange inflows.
He said inflation has moderated while exchange rate
stability has improved following recent policy measures.
“We will continue to maintain stability, not only on
inflation, but in the FX market, with more transparency and consistent
reporting,” he said.
The CBN governor added that the apex bank will remain
vigilant in managing inflation.
“Our focus going forward is to protect the hard-earned
stability we have accomplished so investors and stakeholders can plan with
confidence,” he said.
Cardoso also emphasised the need for coordination between
monetary and fiscal authorities to sustain economic growth.
He said the inclusion of fiscal authorities in the bank’s
board and monetary policy committee strengthens policy alignment.
The apex bank chief also said the CBN is working with
financial technology firms to address regulatory bottlenecks and support
innovation in digital finance.
He added that ongoing reforms have shifted Nigeria from a
phase of stabilisation to capital mobilisation, positioning the economy for
growth, driven by domestic investment and improved global confidence.
Also at the event, Muhammad Sani Abdullahi, CBN deputy
governor for economic policy, said the apex bank has achieved a significant
level of macroeconomic stability.
“We have seen stability. Net and gross reserves are high,
foreign reserves are over $50 billion, the foreign exchange market has
stabilised, and inflation is falling , but we are cautious,” Abdullahi said.
Philip Ikeazor, CBN deputy governor for financial system
stability, said the reforms are designed to endure beyond the current
administration.
“All the reforms that have been put in place cut across
stakeholders, ensuring that even at the end of this administration, people will
see the need not to reverse them,” Ikeazor said.
‘NIGERIA’S NEXT REFORMS SHOULD FOCUS ON TRANSLATING INTEREST
TO CAPITAL FLOWS’
Jonny Baxter, British deputy high commissioner to Nigeria,
said the next phase of reforms should focus on translating renewed investor
interest into tangible capital inflows.
“The next phase of the reforms should be converting renewed
investor interest into long-term sustainable investments,” Baxter said.
He added that the UK remains a key partner in Nigeria’s
banking and capital markets.
Odile Renaud-Basso, president of the European Bank for
Reconstruction and Development (EBRD), also highlighted Nigeria’s economic
potential.
“We see all the potential in the economic stabilisation in
Nigeria, the growth of the population, the appetite, the investment in new
technologies, and the ability of the people to embrace new technologies,” she
said.
On his part, Steve Gray, head of West and Central Africa at
UK Export Finance (UKEF), emphasised the role of transparency in sustaining
investor confidence.
“Confidence is built through full fiscal transparency. But
the reforms in Nigeria are providing transparency and building confidence,”
Gray said.
Melis Ekmen Tabojer, managing director for policy strategy
and delivery at the EBRD, said the reforms are already influencing investor
behaviour.
“The recent reforms that Nigeria has had have had a huge
impact in attracting investors and how policies are made,” she noted.
Speaking on behalf of the federal government, Sanyade Okoli,
special adviser to the president on finance and the economy, said Nigeria is
now focused on attracting long-term capital to drive growth.
“We need to work with partners who will bring the sticky,
equity capital,” she said, noting that the government alone cannot fund the
country’s growth ambitions.
Banking sector leaders, including chief executives of major
Nigerian lenders, also backed the reforms, saying they have improved confidence
and strengthened the capacity of banks to finance projects.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com