Nigeria’s Financial System Stable, Reforms Here to Stay — CBN Governor Cardoso Reassures Investors
Reassurance Amid Global Uncertainty:
Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has affirmed the stability and resilience of Nigeria’s financial system despite global economic headwinds. Speaking at the recent Monetary Policy Committee (MPC) meeting in Abuja, Cardoso stated that ongoing reforms, including banking sector recapitalisation and anti-inflationary measures, are irreversible and already yielding positive outcomes. He emphasized that the Nigerian economy is structurally insulated from external shocks, projecting a clear policy direction that supports investor confidence.
International Endorsements Boost Credibility:
Cardoso highlighted recent affirmations from global institutions like the IMF and Moody’s, which commended Nigeria’s fiscal and monetary reforms during recent reviews. These acknowledgements, he said, are critical for foreign investment decisions and confirm that Nigeria is steering away from past policies like deficit monetisation and harmful subsidies. The governor noted improved foreign exchange (FX) market operations and growing investor confidence as evidence of reform success.
Tackling Inflation and Strengthening Policy Tools:
With Nigeria’s inflation rate gradually declining—year-on-year inflation dropped from 22.97% to 22.22% in June, the CBN remains committed to achieving single-digit inflation. Cardoso attributed progress to a tight monetary stance involving tools like the Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR). He acknowledged that systemic liquidity challenges remain, stemming from past excess money supply, but maintained that the CBN would persist with tough policies to ensure inflation reduction is both statistical and structural.
Shielding the Economy from Global Shocks:
Responding to concerns over global inflation drivers such as food supply shocks and energy costs, Cardoso stressed Nigeria’s preparedness. Domestic oil production has improved thanks to better security, foreign reserves have topped $40 billion, and diaspora inflows are rising due to new policy tools like the non-resident BVN. These, he said, form part of a deliberate strategy to create economic buffers and build resilience against external vulnerabilities.
Driving Thought Leadership and Institutional Reform:
Beyond its traditional roles, the CBN is revamping its internal culture through initiatives like the Knowledge Assimilation Programme, aimed at strengthening research and policy innovation. Cardoso emphasized the importance of transforming the institution into a thought leader within Nigeria and across West Africa. He assured the public that accessibility, transparency, and intellectual openness are becoming core values of the Bank, and that its future engagements will go beyond monetary policy to broader economic discourse.
source: The sun