CBN's Cardoso: Nigeria Shifting from Vulnerability to Strength, Secures Global Backing
WASHINGTON, May 1, 2025 /PRNewswire/ -- Nigeria has significantly increased its resilience to external shocks, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said as he wrapped up a pivotal week of global engagements at the IMF and World Bank Spring Meetings. Yet, while recent progress is encouraging, Cardoso committed to "double down" to ensure stability translates into tangible improvements for all Nigerians.
"We have moved decisively from vulnerability toward strength," Cardoso told reporters, citing reforms that have restored investor confidence, stabilised the naira, and reinforced external buffers, even as global economic uncertainty persists.
Nasdaq forum underscores investor confidence
Ahead of the Spring Meetings, the CBN convened a high-level "Nigeria Investment Agenda" forum at the Nasdaq MarketSite in New York, opened by Nasdaq President Tal Cohen. Senior executives from JPMorgan Chase, Citi, Standard Chartered and Helios joined senior Nigerian officials to discuss the country's economic trajectory.
Deputy Governor Muhammad Sani Abdullahi outlined a series of structural reforms, including tighter monetary policy, foreign exchange market liberalisation, and an end to opaque deficit financing. "We have moved decisively to restore policy clarity and coherence," he said.
Global financial leaders echoed the sense of positive momentum. Jason Rekate, Global Co-Head of Corporate Banking at Citi, called the FX reforms "fundamental" and a "complete game changer" for international investors. "The idea of investors being able to put capital into Nigeria, realise some return and be able to repatriate profits and dividends when they want to — that has completely changed."
Joyce Chang, Chair of Global Research at JPMorgan Chase, praised Nigeria's responsible policy amidst market turbulence, noting that for 18 months, Nigeria remained one of JPMorgan's top recommendations — a reflection of strong institutional interest driven by the reform direction.
Governor Cardoso said the New York engagement "significantly bolstered investor confidence," crediting Nigeria's economic reforms and Fitch's recent upgrade of the country's credit outlook as evidence of "consistent policies which have brought about stability in our economy, setting the stage for investments and growth."
Spring Meetings spotlight reforms
At the IMF and World Bank Spring Meetings in Washington D.C., Cardoso presented evidence of Nigeria's strengthening economic fundamentals:
- Inflation: Monetary policy remains firmly anchored on reducing inflation to single digits over the medium term to restore price stability and protect purchasing power.
- Foreign exchange: The naira has stabilised at a more sustainable level, with the spread between official and parallel market rates "all but eliminated," restoring market confidence and encouraging autonomous inflows.
- Reserves: External reserves have climbed above $39 billion, covering nearly ten months of imports.
- Balance of payments: A surplus of $6.83 billion in 2024, the first in several years, has been recorded.
"The macroeconomic stability we are beginning to see today would not have been possible without the disciplined reforms of the past 18 months," Cardoso said.
Global optimism tempered by realities
Development partners, including the IMF and World Bank, expressed cautious optimism about Nigeria's trajectory. Governor Cardoso reported that investor feedback, including from the Nigerian diaspora, has been "overwhelmingly positive, signalling growing alignment with the country's policy direction."
However, he warned that sustaining momentum would require continued discipline and adaptability, especially to ensure that macroeconomic gains translate into real improvements for households and businesses. Nigeria's challenges remain significant, including navigating softer oil prices and tighter global liquidity, he said.
Banking sector recapitalisation efforts are already underway to support Nigeria's goal of building a $1 trillion economy by 2030. "We return home mindful of the scale of the challenges ahead but filled with renewed commitment to stay the course and build on the hard-won gains so far," Cardoso said.
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SOURCE Central Bank of Nigeria