CBN’s Bank Recapitalisation and FX Reforms Pave Path to $1 Trillion Economy by 2030
The Central Bank of Nigeria (CBN) is implementing a series of strategic reforms to strengthen the nation’s financial services sector, aiming to help Nigeria achieve its ambitious target of a $1 trillion economy by 2030. Under the leadership of Governor Olayemi Cardoso, key policy measures include bank recapitalisation, foreign exchange (FX) reforms, inflation control, and improved regulatory oversight. These measures are designed to enhance financial stability and promote inclusive economic growth, with significant support from both the public and private sectors.
The CBN’s bank recapitalisation initiative, which began in 2024, mandates that commercial banks meet new capital requirements by 2026, including N500 billion for international banks. The goal is to bolster banks’ capital adequacy, enabling them to better serve a growing economy. This process aims to enhance financial inclusion, particularly in underserved markets, and support the expansion of loans and financial products for Micro, Small, and Medium Enterprises (MSMEs) and rural communities. Stakeholders have expressed confidence that banks will successfully meet these targets, despite initial concerns.
Additionally, the CBN has introduced foreign exchange reforms that have already yielded positive results, such as a 79.4% increase in remittances to $4.18 billion in 2024. By lifting restrictions on 41 items previously barred from FX access, the CBN is creating a more conducive environment for trade and investment. Analysts believe these measures will help stabilize Nigeria’s forex market, foster long-term growth, and pave the way for broader economic development.
As Nigeria moves toward its $1 trillion GDP target, experts emphasize the importance of strong governance and strategic investments. With the banking sector already showing signs of resilience, Cardoso and other stakeholders remain hopeful that the country’s financial system will play a central role in driving economic growth, ensuring that Nigeria is well-positioned for the challenges and opportunities ahead.
source: business day