Nigeria’s Economic Reforms Gain Global Support, Strengthening Naira and Investor Confidence

At the 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank Group, Olayemi Cardoso, Governor of Nigeria’s Central Bank (CBN), highlighted the significant progress made in stabilizing the naira and narrowing the gap between official and parallel market exchange rates. This achievement, attributed to disciplined monetary reforms and policy clarity, marks a pivotal moment in Nigeria’s economic recovery. Cardoso noted that the previously wide exchange rate discrepancies had all but vanished, signaling greater market stability and reducing speculative activities.

Cardoso further explained that the renewed currency stability has contributed to improved liquidity conditions across foreign exchange markets. On Friday, the naira maintained steady performance, closing at N1,599.54 in the official market and N1,605 in the parallel market. This currency stability, Cardoso stressed, has been instrumental in rebuilding investor confidence, encouraging foreign capital inflows, and diversifying Nigeria’s foreign exchange sources beyond oil revenues. Additionally, the country’s foreign reserves now exceed $38 billion, offering a strong buffer against global economic volatility.

The governor also pointed to the country’s favorable economic indicators, including a $6.83 billion balance of payment surplus in 2024, driven by increased exports and capital inflows. As part of ongoing reforms, Nigeria’s banking sector is undergoing recapitalization to enhance its capacity to support the real economy. These efforts are backed by strong support from key stakeholders, positioning Nigerian banks to operate with greater scale and stability, ensuring their ability to meet the demands of a growing economy.

Wale Edun, Nigeria’s Minister of Finance, echoed Cardoso’s remarks, stressing that Nigeria’s reform trajectory has garnered widespread international approval. He shared that the U.S. State Department referred to the reforms as an “economic miracle,” reflecting the global recognition of Nigeria’s efforts. Edun noted that there is a growing interest in Nigeria, particularly in the natural gas sector, with the U.S. expressing strong support for initiatives like the Nigeria-Morocco Gas Pipeline project. He emphasized the government’s commitment to fiscal consolidation and job creation as key drivers for sustainable economic growth.

Source: Business day