To commemorate his one year in office as the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has outlined critical milestones in the Bank’s ongoing economic reform agenda to strengthen and grow the economy.
In his keynote address at a symposium on economic reforms and the unveiling of the compendium, “Promoting Stability in an Era of Economic Reforms: The Journey So Far”, in Abuja on Thursday, to mark the first anniversary of his management team, Cardoso said one of his key targets was to increase foreign remittances to Nigeria to about $1billion monthly.
Reflecting on the transformative policy actions of the past year, Cardoso underlined CBN’s steadfast commitment to stabilising the economy, curbing inflation, and restoring investor confidence.
The event, he explained, was not a celebration, but an acknowledgement of the Bank’s milestones achieved in the past year, despite the crisis that prevailed when he and his team assumed office in 2023.
Describing the past one year as one of the most challenging yet for the Bank’s transformation, the CBN governor said the Bank was still able to address the credibility deficit it faced at the time.
The reforms, he pointed out, had started to yield positive results, including marked improvements in the foreign exchange market and a stabilisation of foreign reserves, which have now surpassed the $40 billion mark, the highest in 33 months.
Noting that inflation remained elevated, he said it was on a downward trend, signalling that the reforms were taking hold in restoring market equilibrium and fostering growth.
Cardoso detailed the inherited economic challenges of his administration, such as the gross domestic product (GDP) growth slowdown to 2.31% in Q1 2023, a significant decline from earlier years, and a sharp rise in inflation to 24.1% by mid-2023.
The CBN, he said, confronted these pressures with a robust policy response in the past 12 months, prioritising measures to enhance stability in the foreign exchange (FX) market, improve monetary policy and curb inflation.
To address the fiscal deficit, he highlighted the impact of the “Ways and Means Advances” by the CBN, which reached N22.7 trillion by mid-2023, necessitating urgent policy actions by the apex bank.
Also, he addressed the country’s capital importation challenges, with foreign direct investments and portfolio investments falling dramatically over the past decade. The Governor acknowledged the adverse effects of multiple exchange rate windows, which encouraged arbitrage, reduced foreign investment, and led to a backlog in FX settlements.
The revenue losses attributed to these exchange rate issues were estimated at N6.2 trillion in 2022 alone.
In response to these, he said the CBN undertook a series of impactful reforms, including a recalibration of the Monetary Policy Rate (MPR), raising it by 850 basis points to 27.25%, alongside an increase in the Cash Reserve Ratio for commercial banks to 50%. These adjustments, Cardoso emphasised, were critical to addressing inflationary pressures and fostering a stable economic environment.
The centrepiece of the reforms, he pointed out, was the CBN’s new 2024-2028 Corporate Strategy, branded with the values of Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT).
As part of this strategy, he said the Bank moved away from quasi-fiscal interventions and was committed to orthodox monetary policies and streamlined FX windows to restore market confidence.
He said the CBN had also implemented new Bureau de Change (BDC) operations guidelines to enhance regulation and minimise FX market disruptions.
In addition, Cardoso highlighted the Bank’s drive to improve internal efficiency, leveraging a “Digital-First Initiative” that has automated key processes, reduced operational costs, and introduced data-driven tools for effective policy-making. The Integrated Data Collection and Sharing Portal (IDSP) and a new Investor Relations Unit were established to foster a transparent and data-centric environment that encourages investment and supports the Bank’s economic objectives.
While thanking his team and the Bank’s staff for their cooperation, Cardoso expressed optimism about the future and called for strong leadership, a unified vision, and collective resilience to address Nigeria’s challenges and pursue the nation’s economic aspirations.
In his goodwill message, the Governor of Lagos State, Babajide Sanwo-Olu, lauded the CBN management team for its dedicated effort toward stabilising the economy.
He commended the team’s commitment to self-assessment, noting their willingness to critically review their performance, ask candid questions, and seek constructive feedback from industry stakeholders.
Sanwo-Olu, accompanied by his Imo Staye counterpart, Hope Uzodinma, emphasised the importance of collaboration between fiscal and monetary authorities, underscoring the need for unified policymaking that communicates a cohesive goal and message to the public.
The state’s Deputy Governor, Economic Policy, Muhammad Sani Abdullahi, said the occasion was about recognising the CBN’s emerging accomplishments and celebrating the collective journey the institution had undertaken as a unified team.
Reflecting on the challenges faced over the past year, he emphasised how each obstacle offered valuable opportunities for learning, development, and growth, demonstrating the resilience of the Bank’s management and staff.
He described the publication, “Promoting Stability in an Era of Economic Reforms: The Journey So Far,” as a reflection of the Bank’s shared vision, dedication, and commitment to excellence in navigating a dynamic economic landscape.
The compendium, he noted, encapsulated the values of collaboration, resilience, and determination that had driven the institution’s transformative journey.
