Cardoso: Nigeria’s financial reforms boost shock resistance, investor confidence

2026-03-18 - 15:14

By Babajide Komolafe Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has said that Nigeria’s recent monetary and financial-sector reforms have strengthened the country’s capacity to withstand external shocks and restored investor confidence. Speaking at the Africa Capital Forum in London on Tuesday, on the sidelines of President Bola Ahmed Tinubu’s state visit to the United Kingdom, Cardoso highlighted that disciplined policy measures and institutional reforms had created a more resilient financial system. He noted that Nigeria’s foreign exchange market now enjoys greater transparency and liquidity, with a new FX manual simplifying trade and investment processes and removing many former capital controls. Cardoso also announced the near-finalisation of the new Payments System Vision for Nigeria, aimed at positioning the country as a regional leader in digital and cross-border payments. Reporting on the bank recapitalisation programme, the CBN Governor said over 30 banks had met the new capital requirements, with verification ongoing for the rest. “About 28 per cent of investment in the recapitalisation came from foreign sources,” he added, highlighting renewed confidence in Nigeria’s financial stability. He further explained that diaspora remittances had grown substantially, helping diversify foreign exchange reserves and making them more resilient to global volatility. “Our focus going forward is to protect the hard-earned stability we have accomplished so investors and stakeholders can plan with confidence,” Cardoso said, pledging transparency and ongoing communication to maintain trust and avoid past policy missteps. On the digital finance agenda, he noted that the CBN is working closely with Nigeria’s fintech sector to remove regulatory bottlenecks and support innovations that enhance financial inclusion across Africa. Cardoso also stressed the importance of coordination between fiscal and monetary authorities, noting that the inclusion of fiscal representatives on the CBN Board and Monetary Policy Committee is critical for sustainable growth. He reported that inflation had declined sharply, exchange-rate stability had improved, and reforms had positioned Nigeria for significant growth driven by domestic investment, oil-sector reforms, and renewed global trust. “We will continue to maintain stability, not only in inflation but in the FX market, with more transparency and consistent reporting,” he said, adding that the CBN would remain vigilant in managing inflation. The Governor emphasised that Nigeria’s macroeconomic reforms have shifted the country from stabilisation to capital mobilisation, making it “an economy to watch very closely” as growth drivers strengthen and the banking system becomes one of Africa’s most robust. He concluded by stating that the CBN is reviewing its policies to develop a predictable framework that minimises discretion while supporting meaningful and sustainable financial growth.