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CBN: Leading financial dialogue with JP Morgan, NGX, others

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In this piece, JOSEPH INOKOTONG reports that the Central Bank of Nigeria (CBN) Nasdaq MarketSite forum in New York undoubtedly focused on substantive discussions and prospects, engaging critical voices, evaluating progress, and identifying requirements for building lasting partnerships and attracting long-term capital.

The much-anticipated International Monetary Fund (IMF)/World Bank Group (WBG) spring meeting in Washington, DC, has come and gone, but its trappings will linger on for a long time.

Every year, corporations, sovereign entities, individuals, including the multilateral agencies, gather in the United States to discuss and proffer solutions to economic issues affecting the global economy. Preparatory to the epoch-making event, many financial organisations met with international financial institutions and partners to exchange views and secure a buy-in to their economic policies.

This year was not an exception as the Central Bank of Nigeria (CBN) was not left behind. In anticipation of the IMF and WBG Spring meetings, the CBN partnered with J.P. Morgan, the Nigerian Exchange Group (NGX), and Africa Private Capital Association (AVCA) to host a high-profile global forum at Nasdaq MarketSite in New York.

The forum, titled: “The Nigeria Investment Agenda: Pathways for Growth & Global Partnerships,” convened global investors, diaspora leaders, and senior financial stakeholders to examine Nigeria’s macroeconomic prospects and ongoing reform progress.

During his commanding address, Olayemi Cardoso outlined his comprehensive reform strategy encompassing monetary tightening, foreign exchange market transparency, and enhanced financial governance. He emphasised that these initiatives are establishing the foundation for sustainable macroeconomic stability and heralding a new era of transparency and confidence.

Cardoso reaffirmed the CBN’s unwavering commitment to rebuilding credibility through orthodox monetary policy, transparency, and consistency. “We inherited a crisis of confidence but chose a different path. We’re not turning back,” he stated decisively.

In a powerful fireside chat between the CBN Governor and Nobel Prize-winning economist Dr. James Robinson, Reverend Richard L. Pearson Professor at the University of Chicago, Governor Cardoso elaborated on his vision to reestablish the CBN as a credible, trusted institution, rooted in domestic excellence and respected internationally.

Mr. Muhammad Sani Abdullahi, Deputy Governor for Economic Policy at the CBN, delivered a macroeconomic update highlighting sharp increases in foreign exchange turnover, emerging signs of disinflation, and strengthening external reserves. “With a market-determined exchange rate and a transparent, rules-based policy framework, confidence is gradually being restored in Nigeria’s economy,” he noted.

Welcoming participants to the forum, Dr. Nkiru Balonwu, Adviser to the CBN Governor on Stakeholder Engagement and Strategic Communication, framed the forum as a key moment in the Bank’s broader engagement strategy. “Today is more than a conversation,” she noted. It’s about opening the books on the CBN’s transformation story under Governor Cardoso – sharing the facts, interrogating the progress, and looking ahead together at what more can be done to build sustainable partnerships and unlock long-term capital,” she explained.

Another key highlight of the event was the panel discussion entitled “Repricing Nigeria: Assessing the Scope for Sustained Change.” Moderated by Gavin Serkin, Founder of New Markets Media & Intelligence. The panel featured global financial luminaries: Joyce Chang, Chair of Global Research at JPMorgan Chase; Jason Rekate, Global Co-Head of Corporate Banking at Citi; Razia Khan, Chief Economist for Africa & Middle East at Standard Chartered; and Ahmad Zuaiter, Co-Founder & CIO of Jadara Capital Partners.

Each panelist provided expert perspectives on Nigeria’s investment landscape, noting renewed international interest driven by improved fundamentals, strengthened governance, and clearer policy direction.

The CBN Board and Monetary Policy Committee were represented by US-based diaspora members, Mr. Robert Agbede, Prof. Melvin Ayogu, and Dr. Aloysius Ordu, underscoring the Bank’s global engagement and commitment to leveraging Nigerian talent worldwide. Temi Popoola, Group CEO of NGX, moderated the question and answer session, while Dr. Olubukola Akinniyi Akinwunmi, Director of Banking Supervision at CBN, delivered the closing remarks.

Aside from some of the issues x-rayed during the forum’s discussions, the CBN FX Code/ EFEMS implementation is one of the strategic steps recently taken by the apex bank to enhance transparency and boost market confidence with the inauguration of the Nigeria Foreign Exchange Code (FX Code) in Abuja. The FX Code has so far ignited naira stability at both official and parallel markets.

When the CBN Governor, Olayemi Cardoso recently launched the FX Code, he emphasised integrity, fairness, transparency, and efficiency as critical pillars for driving Nigeria’s economic growth and stability. He stressed that the FX Code was built on six core principles: ethics, governance, execution, information sharing, risk management, and compliance, as well as confirmation and settlement processes.

These principles, he explained, aligned with international standards while addressing the unique challenges within Nigeria’s foreign exchange market.

According to Cardoso, “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.” The CBN stated that while every effort has been made to ensure that the FX Code comprehensively addresses various aspects of market conduct and practice, it is not intended to be exhaustive.

Cardoso also noted that the journey towards market reform is already yielding results. He stated, “The year 2024 was marked by structural reforms that sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”

Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across the financial sector. Its six guiding principles, alongside 52 sub-principles, were designed to become the benchmark for conduct across all participating institutions. Issued as a guideline for the foreign exchange market, the FX Code is backed by the authority of the CBN Act of 2007 and the Banks and Other Financial Institutions Act (BOFIA) of 2020.

These legislative instruments empower the CBN to establish and enforce directives regarding the standards financial institutions must follow in conducting foreign exchange business in Nigeria. The FX Code, therefore, serves as an official directive that all market participants are expected to observe in their operations.

In addition to the FX Code, the apex bank also introduced the Electronic Foreign Exchange Matching System (EFEMS), which has proven effective in other economies in enhancing the functionality of the foreign exchange market.

The EFEMS was meant to check forex market distortions, eliminate speculative activities, and instill transparency. It is commonplace in developed and developing markets and offers real-time information on currency rates, trading volumes, and market activity.

The CBN Nasdaq MarketSite forum in New York was undoubtedly focused on substantive discussions and prospects: engaging critical voices, evaluating progress, and identifying requirements for building lasting partnerships and attracting long-term capital. Central to this endeavor is a clear objective: reestablishing the CBN as a credible, trusted institution respected globally and dedicated to excellence at home.