Nigeria’s Economic Trajectory Turning Positive, Says CBN Governor Cardoso
Reforms Begin to Yield Results as Investor Confidence Grows
The Nigerian economy is showing signs of recovery with increased investor confidence, growing reserves, and macroeconomic stability, according to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN).
IMF/World Bank Meetings Highlight Progress
Speaking at the conclusion of the 2025 IMF/World Bank Spring Meetings in Washington D.C., Cardoso emphasized the CBN’s commitment to reforms aimed at ensuring stability and transparency in the foreign exchange market.
“Thanks to the steps taken over the past 18 months, we have strengthened our monetary buffers and positioned Nigeria to better withstand external shocks,” Cardoso stated.
Painful Reforms Delivering Results
The CBN governor acknowledged that while the economic reforms have been challenging, they have successfully bolstered investor confidence, attracted record capital inflows, and improved Nigeria’s financial position.
“To all Nigerians: these reforms are not easy, but they are delivering results. We have moved from a position of vulnerability toward one of growing strength, and our economic trajectory is beginning to turn positive,” Cardoso affirmed.
Key Achievements of Economic Reforms
Nigeria’s reform program, initiated nearly two years ago, has included:
- Elimination of costly petrol subsidies
- Liberalization of the foreign exchange market
- Implementation of orthodox monetary policies to combat inflation
- Introduction of FX code and Electronic Foreign Exchange System (EFEMS)
Economic Indicators Show Improvement
The reforms have yielded significant results:
- Gross reserves exceeding $38 billion (10 months of import cover)
- Balance of payments surplus of $6.83 billion
- Fitch Ratings credit outlook upgrade for Nigeria
Ongoing Challenges: Inflation Remains Key Concern
Despite progress, Cardoso acknowledged persistent inflationary pressures driven by rising energy costs and food prices:
“We recognize that inflation remains the most disruptive force to the economic welfare of Nigerians… our policy stance is firmly focused on bringing inflation down to single digits in a sustainable manner over the medium term,” he said.
Banking Sector Recapitalization Underway
The CBN governor also highlighted the upcoming banking sector recapitalization exercise, which aims to:
- Strengthen financial institutions
- Enhance capacity to support the real economy
- Improve overall economic stability
For more details, read the original article on BusinessDay.