*Says Nigeria is increasingly recognised as a rising economic force
By Babajide Komolafe & Emma Ujah, Washington DC
Governor Central Bank of Nigeria, CBN, Mr. Olayemi, has said that the apex bank will redouble its efforts to sustain the gains of recent reforms and achieve a single-digit inflation rate.
Cardoso said this while speaking alongside the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun, at the closing press briefing on the country’s participation in the just concluded Spring Meetings of the World Bank and the International Monetary Fund, IMF in Washington DC.
Cardoso said that though the reforms were not easy they are delivering results and have helped the country move from vulnerability toward one of growing strength, while enhancing confidence among international investors.
The CBN Governor assured that the apex bank is focused on bringing down inflation to single digit in order to protect the purchasing power of households.
He said: “Thanks to the steps taken over the past 18 months, we have strengthened our monetary buffers and positioned Nigeria to better withstand external shocks.
“Indeed, the macroeconomic stability we are beginning to see today would not have been possible without these decisive actions.
“We recognize that inflation remains the most disruptive force to the economic welfare of Nigerians.
“Our policy stance is firmly focused on bringing inflation down to single digits in a sustainable manner over the medium term.
“Our goal is to restore price stability, protect household purchasing power, and lay the foundation for long-term investment.
Market-determined exchange rate
“Another key pillar of our reforms is a market-determined foreign exchange regime. We have embraced market-driven pricing for the naira, significantly enhancing transparency and restoring investor confidence.
“Again, thanks to disciplined reforms and policy clarity, the naira has stabilized at a more sustainable level against the U.S. dollar. The once-wide gap between the official and parallel market rates has all but disappeared, a first in Nigeria’s recent history, and speculative arbitrage has all but vanished.
“This renewed stability has restored confidence and spurred autonomous inflows through formal channels. These inflows are diversifying our foreign exchange sources beyond oil.
Improved external reserves
“Nigeria’s external buffers have also strengthened considerably.
“Our foreign reserves now exceed $38 billion, providing nearly ten months of import cover. This robust buffer enables us to better withstand external shocks – whether from declining oil prices or global financial turbulence – thereby safeguarding our economy.
“In 2024, Nigeria recorded a balance of payments surplus of $6.83 billion, the strongest in many years, driven by rising exports and renewed capital inflows.
Growing investors’ confidence
“At these Spring Meetings, our development partners expressed their confidence in Nigeria’s trajectory. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction.
“Nigeria is increasingly recognized as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms.
“These achievements, while encouraging, only strengthen our resolve to press forward. We will not be complacent. Instead, we will redouble our efforts to ensure these positive trends are sustained.”
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