‘Economy strong enough to withstand global shocks’
Nigeria’s economy is now stronger and better prepared to handle global economic shocks, Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, said yesterday. He spoke at the Africa Capital Forum
- New payment system coming, says Cardoso
Nigeria’s economy is now stronger and better prepared to handle global economic shocks, Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, said yesterday.
He spoke at the Africa Capital Forum in London on the sidelines of President Bola Ahmed Tinubu’s state visit to the United Kingdom.
Addressing investors and development partners, the CBN governor said the country’s financial system is being strengthened through disciplined monetary policies and institutional reforms.
He said: “We have created stronger capacity to withstand shocks,” adding that the bank is also reviewing its policies to ensure they are more predictable and reduce uncertainty for investors.
He explained that the ongoing review is aimed at building a system where policies are clear and consistent.
“We are reviewing our policies with a view to developing meaningful policies and establishing a predictable policy framework to minimise discretion,” Cardoso said.
The CBN Governor added the bank has concluded work on a new Payments System Vision for Nigeria, which will soon be launched.
He said the initiative is designed to position Nigeria as a major player in digital payments and cross-border transactions across Africa.
On developments in the foreign exchange market, Cardoso said there is now improved transparency and liquidity.
He noted that a new foreign exchange manual has removed several previous restrictions and made it easier for businesses and investors to operate.
He also gave an update on the bank recapitalisation programme, stating that more than 30 banks have already met the new capital requirements, while verification is ongoing for others.
According to him, about 28 per cent of the funds raised came from foreign investors, a sign of growing confidence in Nigeria’s financial system.
Cardoso said diaspora remittances have increased significantly, helping to strengthen the country’s foreign exchange reserves and making them more stable in the face of global economic changes.
“Our focus going forward is to protect the hard-earned stability we have accomplished so investors and stakeholders can plan with confidence,” he said.
On digital finance, Cardoso said the apex bank is working closely with Nigeria’s fintech companies to remove regulatory challenges and support innovation that will expand financial inclusion, not just in Nigeria but across Africa.
He also spoke on the need for stronger cooperation between monetary and fiscal authorities, noting that such collaboration is important for achieving sustainable economic growth.
He said the inclusion of fiscal authorities in the CBN Board and the Monetary Policy Committee has helped improve coordination.
Cardoso added that inflation has dropped, exchange rate stability has improved, and ongoing reforms have positioned Nigeria for stronger economic growth driven by local investment, reforms in the oil sector, and renewed global trust.
“We will continue to maintain stability, not only on inflation, but in the FX market, with more transparency and consistent reporting,” he said, adding that the bank remains watchful to ensure inflation is kept under control.
He said Nigeria’s economic reforms have moved the country from a period of stabilisation to one focused on attracting investment.
Cardoso urged global investors to see Nigeria as “an economy to watch very closely” as its banking system strengthens and growth opportunities expand.
