CBN Reforms Driving Economic Stability, Investor Confidence — Cardoso
In a compelling address at the inaugural CBN Governor’s Lecture Series at the Lagos Business School (LBS), Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, laid out a bold vision for Nigeria’s monetary future — one anchored on credibility, transparency, and institutional integrity.
Speaking on the theme “Next Generation Leadership in Monetary Policy and Nation Building,” Cardoso explained how far-reaching reforms introduced under his leadership are already stabilising Nigeria’s economy, rebuilding investor confidence, and charting a path toward single-digit inflation in the medium term.
Rebuilding Confidence Through Credibility
Cardoso’s keynote — followed by a candid fireside chat with academics, students, and business leaders — was both reflective and forward-looking.
He recalled inheriting an economy buffeted by high inflation, depleted reserves, and low investor confidence when he assumed office in 2023. “At the time, nearly every macroeconomic indicator was under pressure,” he noted.
To restore confidence, the CBN pursued a clear reform agenda focused on three cornerstones:
- Credibility and transparency in monetary operations.
- Aggressive inflation control and liquidity management.
- Structural reforms to strengthen Nigeria’s financial system.
These measures, Cardoso explained, were designed not only to stabilise the economy but to restore investor faith that had eroded amid years of policy uncertainty.
Tackling Inflation and Exchange Rate Instability
Cardoso revealed that inflation, which had surged to nearly 35%, has since moderated to around 20%, marking a major policy success. Real GDP growth also expanded by 4.2% in the second quarter of 2025, the fastest pace in four years.
He attributed these outcomes to decisive actions such as:
- Raising interest rates by over 800 basis points to tame inflation.
- Restoring sanity and transparency to the foreign exchange (FX) market.
- Deploying technology to curb manipulation through an electronic FX matching system.
“The foreign exchange market had multiple challenges when I took office,” he said. “We introduced stringent reforms that restored access, transparency, and credibility. Today, Nigerians can once again use their Naira debit cards abroad — a symbol of restored confidence.”
Clearing the FX Backlog and Publishing Financials
One of Cardoso’s most notable achievements was the clearing of a verified FX backlog exceeding $7 billion, a task he described as “daunting yet necessary.”
“Promises must be kept for people to trust an economy,” he said. “People invest where there is integrity, credibility, and transparency.”
In a historic move, the CBN under his leadership resumed publishing its financial statements, a practice suspended for years. “Our financials are now live on the CBN website,” he confirmed — a move that has won plaudits from rating agencies and global investors alike.
Strengthening Reserves, Banks, and Inclusion
Nigeria’s external reserves have now risen above $42 billion, a sign of improving macroeconomic fundamentals. Cardoso noted that recapitalisation of banks is underway to ensure a more resilient financial system, while financial inclusion has expanded from 56% in 2020 to over 64% in 2025 through mobile and agency banking.
He added that the CBN’s strategic reforms are fostering long-term stability, with new channels for diaspora remittances and investments further boosting liquidity and reserves.
Next-Generation Leadership and Nation Building
Cardoso’s message to young Nigerians was clear: the future of the economy rests on credibility, competence, and innovation.
“The country’s greatest asset is its next generation — the young people who must lead with integrity and vision,” he said. The CBN’s policies, he emphasized, are not just about macroeconomic balance sheets but about creating opportunities for youth and MSMEs, expanding access to finance, and deepening digital financial literacy.
The governor also spotlighted the transformative role of fintech and digital platforms in redefining payments, savings, and investment landscapes, pledging CBN’s continued support for innovation-driven inclusion.
Academic–Policy Collaboration: The LBS Connection
The Dean of the Lagos Business School, Prof. Olayinka David-West, hailed the partnership between academia and the apex bank, describing it as vital for bridging the gap between “town and gown.”
She noted that the new lecture series will institutionalize thought leadership and policy dialogue — a crucial tool for building public understanding of monetary policy.
BRANDECONOMY TAKEAWAY
Olayemi Cardoso’s reform blueprint for the Central Bank of Nigeria goes beyond firefighting. It represents a decisive effort to rebuild trust in Nigeria’s financial system through transparency, institutional discipline, and youth-focused innovation.
From clearing FX backlogs to publishing financials, tightening liquidity to expanding inclusion, the CBN is signalling to both domestic and international investors that Nigeria is serious about reform — and credible enough to deliver.The message is unmistakable: a credible central bank builds a credible economy.
