In a move to bolster economic relations, Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has called for deeper ties between Nigeria and the Middle East. Speaking at the inaugural Conference on Emerging Markets Economies in Saudi Arabia, Cardoso highlighted the potential for collaboration in infrastructure development, tourism, and financial sector growth. His remarks came following a meeting with Talal Al-Humond, the Assistant Governor for Monetary Affairs at the Saudi Central Bank, where they discussed areas of mutual economic interest.
Cardoso emphasized that Nigeria could learn valuable lessons from Saudi Arabia’s large-scale infrastructure projects, economic diversification, and thriving tourism sector. He further underscored the CBN’s commitment to working with the Nigerian diaspora in the Middle East to boost remittance inflows, which are critical for the nation’s economy. This effort aims to further stabilize Nigeria’s financial sector and improve economic development.
At the conference, Cardoso provided an update on Nigeria’s foreign exchange reforms, which have significantly narrowed the gap between the official and parallel market rates. Through the introduction of an electronic forex matching system and improved transparency in forex trading, Nigeria’s foreign reserves have surpassed $40 billion. Cardoso also discussed the CBN’s tightening monetary policy, which, alongside structural reforms, has been crucial in restoring market confidence and curbing inflation.
Looking ahead, Cardoso stressed the importance of financial inclusion, digital banking, and gender-focused initiatives to further empower Nigeria’s underserved populations. He reaffirmed the need for consistency in economic policies to maintain investor confidence, noting that the CBN’s approach to addressing past economic challenges, such as capital flight and currency depreciation, has garnered international recognition for its necessity in stabilizing Nigeria’s economy.
SOURCE: NAIRAMETRICS