Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has expressed confidence that Nigeria has moved past its historically flawed economic systems, reassuring foreign investors that new reforms are laying the groundwork for a transparent and stable investment environment.
During a conference in London on March 17, Mr. Cardoso made these remarks in a discussion with Odile Renaud-Basso, the president of the European Bank for Reconstruction and Development (EBRD), at the Africa Capital Forum.
The prestigious event, themed 'From Stabilisation to Capital Mobilisation,' drew policymakers, institutional investors, development finance institutions, fintech leaders, and members of the Nigerian diaspora to evaluate Nigeria's reform achievements and identify strategies for unlocking long-term capital.
While addressing the attendees, Mr. Cardoso acknowledged the significant macroeconomic challenges Nigeria has encountered recently. He noted, "Nigeria has gone through the worst economic crisis in its history," highlighting issues such as soaring inflation, excessive liquidity, and capital flight.
He indicated, however, that the situation is beginning to improve, stating that the previously high inflation figures have been cut by half, and the nation has experienced 11 consecutive months of decreasing inflation rates.
"The economic system we had is now dead and buried. What we have now emphasizes liquidity, openness, and transparency," Mr. Cardoso stated. He added that a primary focus of reforms is the elimination of opaque practices and the reinstatement of trust in the central bank.
"One of my commitments was to ensure that people do not need to know anyone at the CBN to conduct their transactions," he explained. He emphasized that monetary policy decisions are now based on evidence and shielded from political pressures.
"For the first time in many years, we have a consistency in policy that is likely to remain," he noted, underlining the importance of increased stability in attracting investments in key sectors such as agriculture, infrastructure, power, and services.
The CBN governor further underscored the expanding international presence of Nigerian banks, mentioning that seven of them are currently operating in the United Kingdom, with one set to open a new branch in Manchester.
"These banks act as ambassadors for Nigeria and must be adequately equipped for success," he remarked. He informed the audience that 23 banks have met the capital adequacy requirements set by CBN, with others undergoing inspection to bolster the financial sector.
The CBN is also transitioning to a rule-based regulatory framework aimed at enhancing governance and minimizing discretionary decisions.
Mr. Cardoso called on the EBRD and other multilateral lenders to consider investments in subnational entities within Nigeria. In her response, Ms. Renaud-Basso expressed optimism regarding Nigeria's economic prospects, announcing plans by the EBRD to begin investing in the country. "We recognize significant potential and the ongoing macroeconomic reforms," she stated, mentioning progress in institutional development and adherence to the rule of law.
She acknowledged that economic transitions can often come at a political cost but require courage, vision, and perseverance, stressing the need for inclusiveness, durability, and transparency.
The forum, a component of Bola Ahmed Tinubu's state visit to the UK, showcased Nigeria’s economic reset to international investors. Finance Minister Wale Edun also highlighted advancements in harmonizing fiscal and monetary policies as essential for restoring investor confidence.
Apart from the discussions, the forum included high-level panel discussions focused on various aspects of Nigeria’s economic transformation. Topics included risks and opportunities in capital markets and the role of Nigerian banks on the global stage.
Another panel scrutinized fintech and remittances, addressing how digital innovation can facilitate diaspora investments. Speakers highlighted the increasing influence of financial technology in enhancing remittances and expanding financial inclusivity.
The overwhelming consensus at the forum was that Nigeria is transitioning from a phase of stabilizing its economy to one focused on growth and capital mobilization. Recent reforms—including adjustments in foreign exchange rates, banking sector recapitalizations, and surges in diaspora remittances—underscore this progression towards a more resilient economic environment.
According to Mr. Cardoso, the definitive message for investors is clear: Nigeria is poised for business under a reformed economic regime. "Concerns about investment are now a thing of the past," he asserted.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!