The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso has outlined measures to tackle inflation and strengthen the banking sector, projecting a more resilient financial system by 2026.
Addressing the House of Representatives Committee on Banking, Cardoso highlighted the CBN’s recapitalization efforts, aimed at supporting the goal of a US$1 trillion economy by 2030.
He also projected a 3.2% growth rate for 2024 and 3.3% for 2025, with the non-oil sector contributing 94.3% to GDP and a 2.8% growth rate. The oil sector’s growth rose to 10.15% in Q2 2024, largely due to improved security measures.
Cardoso discussed significant improvements in Nigeria’s foreign exchange reserves, which grew 12.74% to US$39.12 billion by October 2024. He noted that these reserves can now cover over 12 months of imports, far exceeding international benchmarks.
He emphasized reforms in the foreign exchange market, including the unification of exchange rates and resumption of FX sales at various segments, improving transparency and liquidity.
Cardoso also highlighted improvements in the capital market, where investor confidence has risen, and projected continued economic growth driven by the non-oil, oil, and industrial sectors. While acknowledging ongoing global risks, he expressed optimism that Nigeria’s economic outlook remains positive, supported by strategic CBN initiatives and fiscal policies.
In conclusion, the Governor reaffirmed the CBN’s commitment to monetary stability, banking sector resilience, and economic growth, while addressing inflation and enhancing foreign exchange market efficiency. He stressed the importance of continued reforms to build a stable and prosperous Nigerian economy
Hon. Mohammed Bello El-Rufai, Chairman of the House Committee on Banking Regulations, commended the CBN Governor, Yemi Cardoso, for his efforts in stabilizing Nigeria’s economy.
While acknowledging the progress made in unifying the foreign exchange market and enhancing liquidity, El-Rufai stressed that more work is needed to address Nigeria’s economic challenges.
