The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says Nigeria’s external reserves have risen to about $52 billion, while net external reserves have exceeded $40 billion, attributing the improvement to ongoing economic reforms.
Cardoso said the reforms had helped restore investor confidence and stabilise the foreign exchange market, adding that the banking sector recapitalisation exercise would strengthen lenders’ capacity to support private sector growth.
Speaking during a fireside chat with BusinessDay Chief Executive Officer Frank Aigbogun, the CBN governor urged Nigerian business leaders to take advantage of emerging investment opportunities created by the improving economic environment.
He said the foreign exchange market had undergone significant changes, with previous distortions caused by multiple exchange rates eliminated.
“One of the most significant outcomes of our policies is the foreign exchange market. We have moved from a market characterised by uncertainty and multiple exchange rates to one where those distortions have disappeared. Today, the multiple exchange windows have been collapsed,” Cardoso said.
Highlighting the progress made, he said net external reserves had increased from about $3 billion when the reforms began to more than $40 billion.
“The numbers speak for themselves. As of yesterday, we were hovering at about $52 billion in reserves. When we started, net reserves were in the region of about $3 billion. Today, our net reserves are in the $40 billion range,” he said.
Cardoso said the improved reserves position and policy changes had attracted increased interest from foreign investors, with some investments already being made.
“We are seeing enormous interest from outside Nigeria. Investors are watching very closely. There has been a lot of engagement, and in some cases investments are already being made,” he said.
He urged Nigerian business leaders not to miss opportunities created by the changing economic landscape, warning that delayed action could leave domestic investors behind.
On the banking sector, Cardoso dismissed concerns that banks were focusing more on government securities than lending to businesses, saying the situation would change as economic conditions improve.
He said the banking recapitalisation programme was designed to strengthen the resilience of Nigerian banks and enable them to support the next phase of economic growth.
“Our belief at the time was that we needed to build resilience in our banking system. Initially there was resistance, but in time there was clarity, and people could see that it was in their best interest,” he said.
Cardoso said Nigerian banks had a significant presence across Africa and needed stronger capital bases to maintain stability and withstand economic shocks.
He added that recapitalisation would be accompanied by continued regulatory oversight to ensure the banking system remained sound.
“Our oversight of banks does not stop because they have raised capital. It is going to be continuous because we need a strong and resilient banking sector to take us where we want to go,” he said.
The CBN governor expressed optimism that as current economic reforms take effect, inflation and interest rates would decline, creating a more favourable environment for businesses and improving banks’ ability to lend to small and medium-sized enterprises.
