The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, has outlined its commitment to building upon the significant strides made in 2024, particularly in the realms of foreign exchange market reforms, remittance inflows, diaspora engagement, and overall financial stability. Cardoso emphasized the CBN’s dedication to transparency and stakeholder engagement, both domestically and internationally, as key drivers in bolstering Nigeria’s credibility on the global stage while addressing the nation’s unique economic challenges. The overarching goal, he stated, is to foster sustainable and inclusive economic growth, propelling Nigeria towards its ambitious target of a $1 trillion economy.
The year 2024 witnessed several pivotal interventions by the CBN aimed at stabilizing the naira and enhancing the efficiency of the foreign exchange market. Notable among these was the introduction of the Electronic Foreign Exchange Matching System, a mechanism designed to inject greater transparency into the FX market. Furthermore, the CBN granted Approval In Principle to fourteen new international money transfer operators, a strategic move aimed at strengthening diaspora remittance flows through official channels. These measures, alongside others, reflect the CBN’s commitment to modernizing and strengthening Nigeria’s financial architecture.
Cardoso highlighted several key achievements of the CBN in 2024, including the clearance of verified foreign exchange commitments amounting to $7 billion. This decisive action, coupled with the discontinuation of the Central Bank’s quasi-fiscal interventions and the unification of multiple exchange rate windows, signaled a shift towards a more market-driven and transparent FX regime. The CBN also spearheaded innovative policies and reforms spanning various areas, encompassing the FX market, remittances, financial inclusion, diaspora engagement, regulatory compliance, and private sector growth.
The impact of these policies and reforms was reflected in several positive indicators. Foreign capital inflows surged by over $6 billion in 2024, a testament to the renewed confidence in the Nigerian economy. Nigeria’s external reserves also experienced significant growth, reaching over $40 billion, further underscoring the positive impact of the CBN’s interventions. These achievements highlight the effectiveness of the CBN’s strategic approach in fostering a more stable and attractive investment climate.
Looking ahead to 2025, Cardoso affirmed the CBN’s commitment to building on the momentum gained in 2024. The apex bank will prioritize the implementation of sound monetary policies designed to safeguard Nigeria’s economic future and strengthen regulatory frameworks to inspire stability and confidence within the financial system. The CBN will also continue to advance initiatives that drive prosperity for all Nigerians, with a focus on sustainable and inclusive growth as the bedrock of economic progress.
The CBN’s unwavering focus on supporting President Bola Tinubu’s $1 trillion economy target is evident in various initiatives, including the recapitalization of the banking sector announced in March 2024. This move aims to strengthen the resilience and capacity of the banking sector, positioning it as a key engine for driving economic growth. The CBN’s vision remains clear: to be a trusted and respected central bank, promoting confidence in the Nigerian economy and contributing to a stable, inclusive, and competitive nation.
