Business

CBN Governor, Cardoso, pledges to fix Nigeria’s economy

The Governor, Central Bank of Nigeria (CBN) Olayemi M. Cardoso has given recipes on how to rebuild the Nigerian economy, restore stability, curb speculation, and also restore confidence in the foreign exchange market.

He also said there would be re-capitalisation of the banking system.

Speaking at the 58th annual bankers’ dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso said instead of direct interventions, the CBN will collaborate with stakeholders and formulate policies that create an enabling environment for sustained economic growth and development.

“Our catalytic role will support increased investment and private sector participation in the economy, improve access to finance for Micro, Small and Medium scale (MSMEs) and enhance financial services for the underbanked.

“This includes promoting specialized institutions and financial products to support emerging sectors, developing regulatory frameworks to unlock dormant capital in land and property holdings, facilitating accelerated access to consumer credit, and expanding financial inclusion to reach the masses.

“Furthermore, we will work with experts to develop de-risking instruments that encourage private sector investment in key industry verticals such as housing, textiles and clothing, food supply chain, healthcare, and educational supplies, which have high potential for local inputs and value retention,” he stated.

According to him, the CBN will leverage its convening power to engage multilateral and international stakeholders in government and private sector initiatives.

Furthermore, to ensure stability, curb speculation, and restore confidence in the foreign exchange market, he said CBN has initiated the payment of unsettled forward foreign exchange obligations, and these payments will continue until all obligations are cleared.

This intervention he said has already had a positive impact on liquidity and has led to a significant appreciation of the exchange rate at certain points he stated.

The CBN also recently lifted the ban on 43 items from accessing the official foreign exchange market, allowing market forces to determine exchange rates based on the Willing Buyer – Willing Seller principle.

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