Nigeria’s Economic Reforms Get Global Endorsement
By Ademola Bakare
With a focus on transparency, consistency, and orthodox monetary policy, the governor, Central Bank of Nigeria, Olayemi Cardoso, has been leading the nation’s foremost bank in implementing reforms that have improved Nigeria’s economic outlook, and attracted foreign investment. Since taking office, he has worked tirelessly to address Nigeria’s economic challenges, implementing policies that have improved the nation’s economic stability and promoted sustainable growth.
His almost two years at the helms of affairs at the central bank has been marked by significant milestones, from boosting foreign exchange reserves to promoting financial stability, cementing his legacy as a champion of economic reform. Olayemi Cardoso has not only spearheaded initiatives that have strengthened Nigeria’s financial sector, but has also promoted economic growth, and improved the nation’s global standing, navigating complex economic challenges with audacious reforms that have stabilized the economy and restored investor confidence.
Among his notable achievements thus far, but not limited, are: increased foreign exchange reserves that he has boosted to over $40 billion. His inflation control mechanism through monetary policy tightening has tamed inflation with admiration.
CBN’s foreign exchange reforms he enunciated, introduced transparency with an FX code and Electronic Foreign Exchange Matching Systems (EFEMS) to further enhance his resolve to reengineer Nigeria’s financial ecosystem. Others are inflation-targeting framework, restoring investors’ confidence through transparency, consistency, and orthodox monetary policy, strengthening trade balance, and increased foreign investment, as well as promoting stability in the financial system through proactive measures.
Though Nigeria’s global economic standing may have experienced a decline in recent years, Mr. Bismarck Rewane, CEO, Financial Derivatives Company Limited, noted that Nigeria’s global economic ranking fell from 32nd to 42nd, and its position in Africa slipped from 1st to 4th in wealth management. However, the Bretton Woods institutions, the International Monetary Fund (IMF) and World Bank have provided insights into Nigeria’s economic performance and potential. The IMF projects Nigeria’s real GDP growth at 3.2% for 2025.
It said, “despite having the largest economy in Africa, Nigeria’s poverty rate is estimated to have reached 38.9% in 2023, with approximately 87 million Nigerians living below the poverty line”. As part of its support to Nigerian government, it confirms that Nigeria has an outstanding purchase and loan balance of $613.62 million Special Drawing Rights (SDR) with the IMF as of December 31, 2024. According to the IMF, it lauded President Bola Tinubu’s administration for implementing bold reforms, which include removing petroleum subsidies and unifying the exchange rate to re-establish macroeconomic stability and growth.
On its part, the World Bank Group has invested about $12.2 billion investment in Nigeria, focusing on investing in human capital, thereby harnessing Nigeria’s youthful demographic dividend and promoting job creation, thus supporting economic diversification and private sector-led growth. The group pledged building resilience and addressing service delivery gaps in conflict-affected areas like North-East region of the country, as well as strengthening public sector ecosystem, thereby Improving public service delivery, domestic revenue mobilization, and debt management.
The IMF and World Bank are collaborating actively with the Nigerian government to support its reforms and development objectives, including the battle against pandemic poverty.
This obvious appreciation of government’s effort may have bolstered the Central Bank of Nigeria (CBN) in partnership with NASDAQ, to organize a high-net worth global forum at the Nasdaq MarketSite in New York on April 17, 2025, ahead of the annual IMF and World Bank Group Spring meetings to promote CBN’s economic turnaround reforms. The event was organized in collaboration with J.P. Morgan, the Nigerian Exchange Group (NGX), and the Africa Private Capital Association (AVCA), bringing together global investors, diaspora leaders, and high net worth financial stakeholders. The CBN governor, Olayemi Cardoso, led the Nigerian delegation.
Discussion centred on Nigeria’s investment potential, macroeconomic outlook, and the ongoing reform initiatives. The CBN governor emboldened by the global appreciation of the reforms assured international investors of Nigeria’s commitment to macroeconomic stability, and rebuilding trust in the nation’s economy through robust reform initiatives. The reform strategy he enumerated to include among others, strict adherence to orthodox monetary policy tools to curb inflation, implementing a transparent mechanism in the foreign exchange market, and strengthening financial governance to attract and retain international investments.
The parley highlighted, and endorsed Nigeria’s growing investment potential, driven by improved fundamentals, stronger governance, and clearer policy direction. The endorsement, to the delighted Nigerian delegation, dovetailed into strategies for attracting long-term investment and building sustainable partnerships.
As Olayemi Cardoso continues to lead the Central Bank of Nigeria, his commitment to economic stability and growth will undoubtedly shape the nation’s future. His achievements serve as a testament to his visionary leadership and dedication to the country’s economic well-being. His continued leadership will remain pivotal in navigating the economic challenges and seizing opportunities for growth to achieving the projected $1 trillion economy.
Ademola Bakare, a Public Affairs analyst, writes from Abuja.
