The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, stated on Thursday that the macroeconomic reforms and policy measures that Nigeria has undertaken over the last two years will enable the nation to weather the current global economic disruptions caused by geopolitical conflicts, such as the war involving the United States, Israel, and Iran.
Cardoso shared this insight in Lagos while giving the annual Distinguished Alumni Lecture for the St. Gregory’s College Old Boys Association, centered on the theme, “Strong Foundations: From the Classroom to the Capital Base,” during the college’s Founders Day celebration.
He indicated that this theme serves as a reminder that the ideals that cultivate strong individuals are the same that foster robust institutions and economies.
The CBN Governor’s affirmations came during a day when significant stakeholders from the private sector, academia, and civil society acknowledged the necessity for the ongoing reforms by the federal government.
However, they raised concerns regarding the swift implementation of these reforms without adequate social safety nets and highlighted how inadequate infrastructure continues to negatively affect businesses and ordinary citizens.
These discussions took place in Abuja during a forum titled “Sustaining and Deepening Economic Reforms in Nigeria,” organized by Agora Policy in collaboration with the Nigerian Economic Summit Group (NESG), with backing from Nigeria Economic Stability and Transformation (NEST) and the UK International Development.
Cardoso stated, “Currently, the global economy encounters renewed shocks, including consistent geopolitical tensions and the latest developments in the US–Israel–Iran situation.
“These circumstances pose risks such as elevated energy prices, disruptions to supply chains, and increased risk aversion among foreign investors.
“Nonetheless, the macroeconomic reforms and buffer policies we have established over the past two years position Nigeria in a significantly stronger stance to face these obstacles.
“Storms may approach, but our structure will remain steadfast. The importance of strong foundations is clear: whether for individuals, institutions, or nations.”
He elaborated, “Everyone knows the value of constructing a house on solid foundations as opposed to unstable ground or decaying bases.
“Foundations fundamentally determine if a structure can endure inevitable challenges.
“The same principle applies to economies. The robustness of an economy’s foundations typically becomes most evident during turbulent periods.”
According to Cardoso, institutions like St. Gregory’s contribute more than mere education; they build foundational character, discipline, intellectual curiosity, and integrity.
“Such qualities are practical tools that influence how individuals make choices, handle responsibilities, and navigate life’s uncertainties,” he added.
He reflected on how Nigeria’s financial system has considerably expanded over the past two decades but stressed that mere growth is insufficient without resilience and enhanced capacity. This perspective led to the CBN’s initiation of the banking recapitalization program in 2024.
Cardoso mentioned, “As of March 12, 2026, a total of 33 banks have successfully attracted additional capital, and 30 have met the new minimum capital requirements for their licensing categories.
“The remaining banks are currently in the CBN’s routine verification process according to the established compliance schedule.”
He pointed out that the existing recapitalization initiative has rekindled global investors’ confidence in Nigerian banks, with significant investment announcements expected soon.
He highlighted that the CBN's return to traditional monetary policy in 2023 has resisted pressures to continue past quasi-fiscal interventions that distorted the macroeconomic environment.
Cardoso asserted that there would be statistical evidence showing that several nations cannot compare to the volume of excess resources injected into Nigeria's economy under previous unconventional regimes.
“Our determination to combat inflation has been unwavering, and the stringent monetary policy we adopted has greatly reduced inflation from a peak of 34 percent to approximately 15 percent today.
“Our target remains to lower it to single digits, recognizing that this cannot be achieved overnight.
“Our allegiance to transparent, well-governed, and effective markets is reflected in the foreign exchange market.”
He emphasized, “Through deliberate policy measures, we have removed the system of multiple exchange rates that previously benefitted a select few.
“Simultaneously, we have diminished the parallel market premium from about 50 percent in 2022 to less than two percent on average for 2025.”
Cardoso noted that Nigeria’s foreign exchange market now operates with significantly enhanced liquidity and efficacy, having addressed the backlog of unmet demands. Market players are now conducting transactions without relying on extraordinary interventions from the central bank.
He added, “We have documented nearly a 200 percent rise in capital and investment inflows between 2023 and 2025.
“It’s important to understand that the recent currency stability is not accidental, but a product of intentional efforts to restore trust and bolster both domestic and international investors’ confidence.
“Our external reserves have recently surpassed 50 billion dollars, indicating structural advancements in our balance of payments and rising investment inflows into Nigeria.”
Cardoso remarked on the depth of Nigeria’s foreign exchange market demonstrated recently with transactions exceeding $1 billion.
This progress represents not just the resilience of Nigeria’s financial system, but also the increasing trust investors have in the long-term potential of the economy.
“By fortifying the capital foundations of our banks and ensuring that our financial markets remain transparent and well-regulated, we are also strengthening the very foundation of economic growth,” he indicated.
He affirmed the CBN’s seriousness regarding the fintech landscape, establishing clearer regulations for Know Your Customer (KYC), Anti-Money Laundering (AML), and operational risk measures, insisting that these are not hindrances but essential infrastructures for sustainable innovation.
He noted, “Just as capital buffers protect banks, these regulatory frameworks safeguard the integrity and credibility of the broader financial ecosystem.
“By blending innovation with responsibility, technology with integrity, and opportunity with accountability, we can ensure that Nigeria’s financial system not only adapts to the digital era but flourishes within it.
“This is the nexus between solid foundations today and sustainable growth tomorrow.”
Cardoso encouraged the students of St. Gregory’s, reassuring them that they are entering a realm full of remarkable possibilities, with many of the industries that will define their careers still emerging.
He said, “Excitingly, the future will not be dominated by a single profession. We increasingly witness the convergence of disciplines in ways that were previously unimaginable.
“The doctor of tomorrow might use artificial intelligence to diagnose ailments, while the lawyer collaborates with technologists to craft digital contracts and regulatory frameworks.
“Engineers may create financial platforms, while financiers may employ data science to navigate global risks.
“With new creative and entrepreneurial avenues unfolding, it suggests that the careers of the future will more and more favor those who can integrate diverse skills and viewpoints.”
He elaborated, “Today’s youth are crafting careers by blending creativity with technology, business with storytelling, and analytics with design.
“Whether you aspire to be a doctor, lawyer, engineer, financier, entrepreneur, athlete, or artist, your success will increasingly hinge on your ability to navigate multiple disciplines.”
Cardoso explained that skills in areas like artificial intelligence, coding, data science, digital media, and emerging technologies will enhance, but not replace traditional professions.
“As you envision your future, consider not only the present state of the world but the rapidly evolving landscape ahead.
“The careers of the next couple of decades will reward those who are curious, adaptable, and keen to learn beyond the confines of a single field of study.”
He remarked that the founders of St. Gregory’s understood that the most crucial foundations a nation could construct are not physical structures but human resources.
Cardoso asserted, “Robust educational institutions generate disciplined thinkers. These thinkers foster strong institutions, which in turn cultivate prosperous nations.
“Today’s classrooms will influence the financial systems of tomorrow. The character cultivated here will affect decisions shaping markets, institutions, and policies across our nation.”
During a panel discussion at the Agora Policy forum, Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry (LCCI), noted how recent reforms concerning foreign exchange and fuel subsidies have affected the economy in various ways.
Commending the reforms for addressing some systemic distortions, Almona mentioned that while investor confidence in Nigeria has increased following the reforms, businesses continue to face a challenging operational landscape and receding consumer demand.
She indicated that there were hopes that savings from the removal of subsidies would be redirected towards infrastructure, particularly in the power sector.
Almona urged complementary actions from fiscal and monetary bodies to mitigate the reforms' impacts on businesses and vulnerable communities.
She pointed out that the private sector is struggling to survive, with approximately 50 percent of business expenses allocated to energy costs. Furthermore, she called for innovative strategies to support small and medium enterprises (SMEs).
Almona also expressed disappointment over the ineffective tracking of governmental interventions in certain sectors of the economy.
Dr. Hussaini Abdu, Country Director of CARE International, contributed by advocating for a standardized national framework for social protection.
Abdu noted that the governmental push for rapid implementation of the reforms, without safety measures for the populace, is unacceptable. He expressed his concerns about the social consequences of these reforms stemming from insufficient engagement with the populace and the lack of viable social protection strategies beforehand.
In further remarks, Dr. Muhammad Sani Abdullahi, Deputy Governor of Economic Policy at the CBN, stated that the economy was on the verge of collapse prior to the initiation of reforms.
Abdullahi asserted that hesitation from the new President Bola Tinubu’s administration could have resulted in dire economic consequences.
He contrasted the prevailing macroeconomic conditions before the reforms with current realities, stating that net reserves were approximately $800 million compared to around $40 billion now, with inflation on a downward trend, among other indicators.
He noted that before the reforms, investor confidence was lacking as the monetary authority failed to meet its foreign exchange obligations, leaving around $7 billion in unresolved international debts.
Abdullahi confirmed that the ongoing CBN reforms have cleared the backlog of foreign exchange duties, consequently boosting investor confidence, positioning Nigeria as a primary investment destination.
He highlighted the stability in the foreign exchange market and the decreasing inflation trend, indicating that the next phase will focus on ensuring this stability remains sustainable while pursuing broad-based, inclusive growth centered on job creation.
He concluded that the state of affairs was too critical to postpone reforms for even one more day.
Dr. Samer Matta, Senior Economist at the World Bank Nigeria, remarked that Nigeria could have faced a crisis similar to that of Sri Lanka if not for the timely reforms put in place by the Tinubu administration, asserting that a gradual removal of subsidies would not have sufficed.
While acknowledging the importance of social protection before implementing reforms, he advocated for more intentional measures to reduce inflation and achieve at least a five percent economic growth rate.
In her input, Ms. Sanyade Okoli, Special Adviser to the President on Economy and Finance, defended the government’s intentions behind the reforms, highlighting their positive influence on Nigeria’s macroeconomic stability.
She appealed for patience from Nigerians regarding the adverse effects, assuring that measures to alleviate consequences will soon be put into action.
Earlier, Dr. Ojobo Atuluku, Chairperson of Agora Policy, conveyed goodwill and remarked that significant reforms are underway across the economic sector, emphasizing that change is a constant.
Atuluku stressed the necessity of sustained dialogue among those who formulate reforms, those who enact them, and those they affect.
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