The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the country’s external reserves have climbed to about $52 billion, while net external reserves now exceed $40 billion, attributing the gains to ongoing economic reforms.
Cardoso disclosed this on Thursday during a fireside chat with BusinessDay Chief Executive Officer, Frank Aigbogun, where he said reforms in the foreign exchange market have improved stability and strengthened investor confidence.
According to him, the CBN has eliminated multiple exchange rate windows, creating a more transparent foreign exchange market and reducing previous distortions.
He noted that when the current administration began its reforms, net external reserves stood at around $3 billion, but have since grown to over $40 billion, describing the progress as the result of significant policy changes at the apex bank.
Cardoso also said the reforms have attracted growing interest from international investors, adding that some investments are already being made as confidence in Nigeria’s economy improves.
He urged Nigerian business leaders to take advantage of the emerging investment opportunities, warning that delaying investment decisions could mean missing out on the benefits of the improving economic environment.
Speaking on the banking sector, the CBN governor expressed confidence that the ongoing bank recapitalisation programme will strengthen financial institutions and enable them to increase lending to businesses, particularly the private sector.
He acknowledged that many banks currently invest heavily in government securities but said this would change over time as economic conditions improve.
Cardoso said the recapitalisation exercise was designed to build a more resilient banking sector capable of withstanding economic shocks, noting that Nigerian banks already play a leading role across Africa.
He added that the CBN would continue to closely supervise banks after the recapitalisation process, stressing that stronger regulation, lower inflation and declining interest rates would create a more favourable environment for businesses, including small and medium-sized enterprises (SMEs).
