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Tag: Cardoso

  • Investors regaining confidence in Nigeria, says Cardoso, welcomes Harvard scholars

    Investors regaining confidence in Nigeria, says Cardoso, welcomes Harvard scholars

    Governor of the Central Bank of Nigeria (CBN) Olayemi Cardoso has described recent visits by top executives from JP Morgan, Citi Bank and the International Monetary Fund (IMF) as clear indications of growing investor confidence in Nigeria’s economic direction.

    The CBN Governor pointed to progress in stabilising the foreign exchange market and curbing inflation as well as addressing key economic issues despite recent challenges  

    Speaking during a meeting with a delegation of scholars from the Harvard Kennedy School (HKS) Africa Trek at the CBN headquarters in Abuja, Cardoso noted that these financial leaders base their decisions on data and trends rather than sentiment. 

    “Their interest shows that we are on the right path,” he remarked.

    The Africa Trek delegation, which included 50 students from 19 countries, comprised representatives from HKS, Harvard Business School, the Massachusetts Institute of Technology (MIT) and Stanford University. 

    Their visit to Nigeria followed an earlier stop in Ghana as part of a broader initiative to engage with key policymakers and economic stakeholders across the continent.

    Mr. Cardoso, an HKS alumnus and the first African elected to the global HKS Alumni Board of Directors, pledged the CBN’s commitment to fostering intellectual discourse and policy-driven solutions. 

    Read Also: Edun, Cardoso meet to align fiscal, monetary policies

    As a trustee of both the Harvard Club of Nigeria and the Harvard Kennedy School Alumni Association of Nigeria (HKSAAN), the CBN Governor stated that “as we reposition the Bank, we aim to serve as a hub for thought leadership. The exposure gained from institutions like Harvard is invaluable, and we view this as an opportunity to build long-term alliances.”

    Ms. Adaora Ndukwe, President of HKSAAN, and Ms. Sheffy Kolade, HKS Nigeria Trek Delegation Lead, expressed gratitude to the CBN for hosting the delegation. 

    They commended the Bank’s openness to engaging with future policymakers and providing direct insights into Nigeria’s evolving economic landscape.

    The Africa Trek initiative facilitates direct engagement between emerging global leaders and policymakers across Africa. 

    Through discussions with influential figures, participants explore governance, economic development, financial stability, and the role of central banking in national growth.

    This visit marked the first time an Africa Trek delegation has been hosted at the CBN, demonstrating the Bank’s commitment to knowledge exchange and strategic partnerships.

  • Edun, Cardoso meet to align fiscal, monetary policies

    Edun, Cardoso meet to align fiscal, monetary policies

    Fiscal and monetary authorities have met to harmonize their policies following growing calls for better policy coordination.

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, held a strategic meeting at the CBN Headquarters in Abuja yesterday towards forging a unified front to tackle Nigeria’s economic challenges.

    At the core of the engagement was the need to align fiscal and monetary policy frameworks to reinforce macroeconomic stability, strengthen investor confidence, and lay the foundation for sustained economic growth.

    The meeting is part of ongoing efforts by both the fiscal and monetary arms of government to close ranks and ensure that their respective policy tools work in harmony to stabilise the Nigerian economy.

    Read Also: Elebuibon: Why there’s growing urge for money rituals

    Sources familiar with the meeting confirmed to The Nation that both Edun and Cardoso are keen on  deepening  collaboration between their respective institutions, with the goal of ensuring that policy decisions taken by one arm do not undermine or counteract those of the other.

    According to the source, “they are striving to create a unified policy direction capable of addressing inflation, exchange rate volatility, fiscal deficits, and other pressing economic issues.”

    The gathering was also a signal of the administration’s commitment to fully implementing the economic reform agenda of President Bola Tinubu, which places emphasis on efficient economic management, improved public finance, and reforms aimed at stimulating private sector-led growth.

    Both the Finance Ministry and the CBN are seen as key pillars in delivering on these reforms, especially in terms of ensuring price stability, prudent fiscal management, and a conducive environment for domestic and foreign investments.

    Yesterday’s meeting, stakeholders believe, marks a significant turning point in the quest for coherent economic governance. It responds to widespread calls from economic experts, investors, and multilateral partners for Nigeria to enhance the coordination between its monetary and fiscal authorities, in order to better manage the complex dynamics of the national and global economic landscape.

    In recent months, the country has faced a range of macroeconomic pressures, including currency depreciation, inflationary trends, and slow economic growth. Analysts say that tackling these issues requires not just isolated policy interventions, but a coordinated approach where monetary and fiscal policies complement each other.

    Both Edun and Cardoso have at various fora expressed the view that Nigeria’s economic transformation depends on consistent and well-coordinated policies. Friday’s meeting is seen as a practical demonstration of their willingness to work together more closely, moving beyond institutional silos to achieve common national economic objectives.

    Observers say the dialogue between the two key economic managers will continue in the coming months, with follow-up engagements expected to ensure that the alignment of policy continues and translates into tangible outcomes for the Nigerian economy.

    With the Nigerian government pressing ahead with its reform agenda, Friday’s high-level engagement at the CBN headquarters underscores a renewed focus on collaboration, with both the fiscal and monetary authorities poised to pursue shared goals in the interest of economic stability, investor confidence, and long-term growth.

  • Why we raised ATM charges, by Cardoso

    Why we raised ATM charges, by Cardoso

    The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has defended the recent increase in ATM charges, arguing that the measure is a necessary step to improve access to cash, incentivize banks to provide better services, and ultimately support the CBN’s financial inclusion agenda. 

    Speaking to journalists after a recent Monetary Policy Committee (MPC) meeting, Cardoso addressed concerns that the increased charges represent another burden on citizens, clarifying that the policy is designed to solve the very problems it might appear to create.

    Cardoso explained that the decision to adjust ATM charges stemmed from the cash shortages experienced during the Christmas period. The CBN, he said, convened daily meetings to find solutions to the crisis, recognising that banks needed appropriate incentives to ensure consistent cash availability at ATMs. 

    “The banks are interested and need to be incentivised to ensure that there’s regular access for their ATMs, that people can come in, take money, and go out,” Cardoso stated. 

    Read Also: Egbetokun, Cardoso, Kyari, others risk being arrested

    While acknowledging improvements in the situation, he noted that “a lot is not enough,” demanding a seamless and perfectly functioning system. He argued that certain costs need to be absorbed to achieve this goal, and the adjusted ATM charges fall into this category.

    The governor reassured the public that the increased charges only apply to withdrawals from ATMs belonging to “other banks”. Withdrawals from one’s own bank’s ATMs will remain free of charge. 

    Cardoso also suggested a workaround for frequent users of other banks’ ATMs, advising them to obtain cards from those banks to avoid the charges. “If you go to another bank where you go on a regular basis and you feel this is where you want to be, you can actually go there and apply for a card also, and that will not cost you anything,” he clarified.

    The CBN Governor expressed confidence that the new measure will lead to a greater proliferation of ATMs, making access to cash more seamless for the public. He also believes it will discourage the exploitative cash disbursement practices that emerged during the cash shortages, where individuals took advantage of the situation to charge exorbitant fees for cash.

    “It will literally shut that particular area out of business over a period of time,” he predicted.

    The CBN Governor framed the increased charges as a necessary investment in the future, arguing that they will enable banks to maintain and replenish their ATMs more effectively, leading to a more reliable and accessible cash distribution network.

    He stated that the goal is to ensure seamless access to cash for all Nigerians, a key component of the CBN’s financial inclusion strategy. 

    By incentivizing banks to improve their ATM services, the CBN believes it can create a more efficient and accessible financial system for everyone. The governor’s explanation aims to address public concerns by highlighting the long-term benefits of the policy, stressing that the increased charges are specifically designed to address the root causes of cash shortages and improve overall access to cash.

  • NiDCOM boss applauds Cardoso on launch of non-resident Nigerian accounts

    NiDCOM boss applauds Cardoso on launch of non-resident Nigerian accounts

    Abike Dabiri-Erewa, Chairman/CEO, Nigerians in Diaspora Commission (NiDCOM), has described as strategic the introduction of the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA) by the Central Bank of Nigeria. 

    Dabiri-Erewa explained that the initiative will enhance diaspora engagement and bolster Nigeria’s economic growth. 

    The initiative was recently introduced by Mr. Olayemi Cardoso, Governor, Central Bank of Nigeria (CBN). 

    In a statement issued by Abdur-Rahman Balogun, the Commission’s Head, Media, Public Relations and Protocols, the move is a strategic initiative to enhance diaspora engagement and bolster Nigeria’s economic growth.

    “Dabiri-Erewa emphasised the pivotal role of diaspora remittances, noting its status as the highest source of foreign exchange to Nigeria, which surpasses oil revenues.

    “She further highlighted the importance of strategic engagement with the diaspora community, stating, “Nigerians, home and abroad, must join hands to develop Nigeria, as no foreigner will do this for us. 

    Read Also: NIDCOM rejects proposal to tax December returnees

    “The NiDCOM Boss urged Nigerians in the diaspora to leverage these new financial packages.

    “She also commended the CBN’s proactive approach in strengthening ties with the diaspora, citing recent engagements towards optimising remittances and boosting the country’s finances.

    “The Chairman, NiDCOM, expressed optimism that the launch of the NRNOA and NRNIA would help increase economic contributions from Nigerians worldwide.”

  • 1,000 CBN staff left voluntarily, says Cardoso

    1,000 CBN staff left voluntarily, says Cardoso

    Central Bank Governor, Olayemi Cardoso yesterday said that the 1000 staff who left the services of the bank in December were not forced to leave, but left voluntarily with their full entitlements.

    Cardoso who spoke through the Deputy Director Corporate Service, Bala Bello at the resumed investigative hearing on the disengagement of the 1000 workers by the apex bank and how the N50 billion terminal benefits was arrived at for them said the 1,000 members of staff were not forced to quit.

    He explained that the issue of the Early Exit Program and the Restructuring as well as Reorganization was to optimise the bank for enhanced efficiency.

     He said they “are basically ways and means through which the performance of an organisation is optimised by ensuring that round pegs are put in right holes. The manpower requirement of the bank is actually met.

     “The manloading, which is the key responsibilities, key performance indicators of the bank, vis-a-vis the number of people driving the performance of that bank, is at a level where it’s optimum, balancing the human resource requirement, the capital requirement, the skill requirement, as well as the IT requirement of the bank.

    Read Also: Sundowns sign Cardoso ahead of Club World Cup

    “You are very much aware, Chairman, the entire world is going through a process of digitizing its operations and once that is done, a lot of opportunities are created, just like a lot of redundancies are equally created.

     “You have had instances where the request for staff to exit the bank voluntarily actually emanated from the staff. And I believe the Central Bank is not necessarily the first organization to have done that. I’m very happy to mention, Mr. Chairman and members of the committee, that the early exit program of the Central Bank is 100 percent voluntary.

     “It’s not mandatory. Nobody has been asked to leave, and nobody has been forced to leave. It’s a completely voluntary programme that has been put in place.

     “I believe several organizations across the world, and even within this country, both in the private sector and the public sector, are undertaking similar exercises. So nobody has been asked to leave. With lot of humility, I will tell you that this same program that is taking place is not at the instance of the bank.

     “Of course, we have our own challenges, and we know where we want to take the bank to. That’s Cardoso and his team, myself included. But this popular request actually came from the staff.

    “In the past, you have had cases of stagnation and lack of career progression. I mean, in an organization, you’ve got a pyramid where from each level to the next level, you know, the gap keeps narrowing. If not, you are going to have a quasi-organization, inverted pyramid.

     “It doesn’t work. It gets to the level where you have, for example, 30 departments in the Central Bank. You cannot have 60 directors, manning 30 departments. It’s not going to work. So, once those vacancies are filled, it gets to a level where some people, even though they are very qualified, very capable, and are very willing, but the vacancies are not there and are stagnated for a period of time.

    “There are several instances in which similar exercise took place in the Central Bank, which has happened several times. This is not the first time. It’s not the second time. It’s not the third time. It has happened several times. You’ve had instances in which people at the top request that, look, it’s going to take me X number of years to actually aspire to become a director in an organization. But right now, there’s no vacancy. And the person sitting next to me probably has eight years to go. Meanwhile, I have seven.

     “So there’s no career growth. And a lot of opportunities are out there. For example, among the people that have left, there are, like, three or four people who are going to set up a bank.

     “The approach that we told them, literally, anything you want to do, if you need the support of the Central Bank, you are done. So the popular demand then was at the top, people that are stagnated, people that don’t have any career progression any longer, they have reached their peak, and they are willing to go and take other risks before they get to an age where they become scared to take risks.

     “You know, those programmes are actually put in place to ensure that those people are given an opportunity to actually exit, go and start other things with their lives.

     “But in this particular case, based on popular request, and I came with the Union Leader of the bank, the staff requested that in this case, similar opportunity should be extended to other categories of staff. In the entire period that similar exercise has taken place, it’s only people within a certain cadre, within the director cadre. The deputy director and directors who feel they want to go and start some other things, and assistant directors are given.

     “But for the first time in the over 60 year’s history of the bank, the early exit program is extended to everybody who is actually willing to take it. And this came at the instance of the staff. So it’s not mandatory, it’s not compulsory, there’s no coercion, there’s no forceful exit, and there’s no intimidation for anybody to take it.

     “In fact, when this same thing was approved by the bank, and it was open, the number of staff that actually came forward to take it was even very amazing. Like I told you, there are some other people that are even thinking of going to start with their own bank. Those who want to take it, took it, and those who don’t want to take it are still in the bank.

     Chairman of the Ad-hoc Committee, Hon. Usman Kumo, who assured that the Ad-hoc Committee will be fair to all the parties involved in the investigation, noted that the Committee’s responsibility is to submit the report to the House.

     He said: “Let me start by saying that the House of Representatives, the 10th National Assembly, understands that CBN is implementing the Restructuring, Reorganizing and the Early Exit Program. I don’t know whether the CBN Governor can explain or brief this committee on the objectives of the Restructuring, Reorganizing and the Early Exit Program to this committee.

     “And two, can you explain the Early Exit Program and what you intend to achieve with it? When it starts, when it will end, and what is the connection? Between the Reorganization, Restructuring and the Early Exit Programme.”

  • 1000 CBN staff left voluntarily, says Cardoso

    1000 CBN staff left voluntarily, says Cardoso

    Central Bank Governor Olayemi Cardoso said the 1,000 staff who left the services of the bank in December were not forced to leave.

    Cardoso, who spoke through the Deputy Director Corporate Service, Bala Bello at the resumed investigative hearing on the disengagement of the 1000 workers by the apex bank and how the N50 billion terminal benefits was arrived at for them, said the 1,000 members of staff were not forced to quit

    He explained the early exit programme and the restructuring as well as reorganisation was to optimise the bank for enhanced efficiency.

    He said they “are basically ways and means through which the performance of an organisation is optimised by putting, ensuring that round pegs are put in right holes. The manpower requirement of the bank is actually met.

    “The man loading, which is the key responsibilities, key performance indicators of the bank, vis-a-vis the number of people driving the performance of that bank, is at a level where it’s optimum, balancing the human resource requirement, the capital requirement, the skill requirement, as well as the IT requirement of the bank. 

    “You are very much aware, Chairman, the entire world is going through a process of digitizing its operations and once that is done, a lot of opportunities are created, just like a lot of redundancies are equally created.

    “You have had instances where the request for staff to exit the bank voluntarily actually emanated from the staff. And I believe the Central Bank is not necessarily the first organization to have done that. I’m very happy to mention, Mr. Chairman and members of the committee, that the early exit program of the Central Bank is 100 percent voluntary. 

    “It’s not mandatory. Nobody has been asked to leave, and nobody has been forced to leave. It’s a completely voluntary programme that has been put in place.

    “I believe several organizations across the world, and even within this country, both in the private sector and the public sector, are undertaking similar exercises. So nobody has been asked to leave. With lot of humility, I will tell you that this same program that is taking place is not at the instance of the bank. 

    “Of course, we have our own challenges, and we know where we want to take the bank to. That’s Cardoso and his team, myself included. But this popular request actually came from the staff.

    Read Also: CBN reforms support strong, resilient African financial architecture – Cardoso

    “In the past, you have had cases of stagnation and lack of career progression. I mean, in an organization, you’ve got a pyramid where from each level to the next level, you know, the gap keeps narrowing. If not, you are going to have a quasi-organization, inverted pyramid.

    “It doesn’t work. It gets to the level where you have, for example, 30 departments in the Central Bank. You cannot have 60 directors, manning 30 departments. It’s not going to work. So, once those vacancies are filled, it gets to a level where some people, even though they are very qualified, very capable, and are very willing, but the vacancies are not there and are stagnated for a period of time.

    “There are several instances in which similar exercise took place in the Central Bank, which has happened several times. This is not the first time. It’s not the second time. It’s not the third time. It has happened several times. You’ve had instances in which people at the top request that, look, it’s going to take me X number of years to actually aspire to become a director in an organization. But right now, there’s no vacancy. And the person sitting next to me probably has eight years to go. Meanwhile, I have seven.

    “So there’s no career growth. And a lot of opportunities are out there. For example, among the people that have left, there are, like, three or four people who are going to set up a bank.

    “The approach that we told them, literally, anything you want to do, if you need the support of the Central Bank, you are done. So the popular demand then was at the top, people that are stagnated, people that don’t have any career progression any longer, they have reached their peak, and they are willing to go and take other risks before they get to an age where they become scared to take risks.

    “You know, those programmes are actually put in place to ensure that those people are given an opportunity to actually exit, go and start other things with their lives.

    “But in this particular case, based on popular request, and I came with the Union Leader of the bank, the staff requested that in this case, similar opportunity should be extended to other categories of staff. In the entire period that similar exercise has taken place, it’s only people within a certain cadre, within the director cadre. The deputy director and directors who feel they want to go and start some other things, and assistant directors are given.

    “But for the first time in the over 60 years history of the bank, the early exit program is extended to everybody who is actually willing to take it. And this came at the instance of the staff. So it’s not mandatory, it’s not compulsory, there’s no coercion, there’s no forceful exit, and there’s no intimidation for anybody to take it.

    “In fact, when this same thing was approved by the bank, and it was open, the number of staff that actually came forward to take it was even very amazing. Like I told you, there are some other people that are even thinking of going to start with their own bank. Those who want to take it, took it, and those who don’t want to take it are still in the bank.”

    Chairman of the Ad-hoc Committee, Hon. Usman Kumo, who assured the committee will be fair to all the parties involved in the investigation, noted that the Committee’s responsibility is to submit the report to the House.

  • CBN reforms support strong, resilient African financial architecture – Cardoso

    CBN reforms support strong, resilient African financial architecture – Cardoso

     The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the bank’s reforms align with efforts to establish a stronger and more resilient African financial architecture.

    Cardoso said this on Saturday in Abuja during his remarks at the 5th African Union Extraordinary Session of the Specialised Technical Committee (STC) on Finance, Monetary Affairs, and Economic Integration.

    He listed some of the reforms as the transition to a unified exchange rate framework, removal of fuel subsides, and recapitalisation of deposit money banks.

    According to him, in alignment with efforts to build a stronger and more resilient African financial architecture, the CBN had implemented significant reforms aimed at fostering stability, resilience, and growth.

    “Notably, the bank had transitioned to a unified exchange rate framework, enhancing transparency and boosting investor confidence in Nigeria’s foreign exchange markets.

    “In the financial sector, the ongoing recapitalisation of banks has strengthened the industry’s capacity to withstand economic shocks and support sustainable credit growth.

    “Additionally, the removal of fuel subsides has created fiscal space for strategic investments, while targeted policies to enhance diaspora remittances have contributed to an improved external reserve position,” he said.

    The CBN governor said that these measures underscored Nigeria’s commitment to building a robust financial system and alligning with regional aspirations.

    He said that the extraordinary meeting was convened under the theme, “Building a Stronger and Resilient Africa Financial Architecture”.

    He said that the meeting underscored the unwavering commitment to realising the ambitions of the “Abuja Treaty” and the African Union’s “Agenda 2063”.

    “Central to these pursuits is the establishment of the African Monetary Institute (AMI), a landmark institution that will serve as the cornerstone of Africa’s financial and economic integration.

    “There is also the operationalisation of the African Financing Stability Mechanism (AFSM), which is essential for fostering financial resilience within our continent.

    “The establishment of AMI will mark a significant milestone in Africa’s journey toward a common currency., while the AFSM represents  a proactive approach to safeguarding  financial stability in an  increasingly uncertain global economic landscape,” he said.

    Read Also: Why Nigerians should not ‘Japa’, by Cardoso

    Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, commended the Africa Union Commission for its exemplary organisation and facilitation of the “all important meeting”.

    Edun, who was represented by Aisha Umar, the Director of Special Duties, Federal Ministry of Finance, said that the theme of the ministerial dialogue underscored the importance of Africa working collectively in a more coordinated manner.

    He said that such continental cooperation would help in shaping up its economies in a way that African countries would not be dependent on aid from international partners.

    “It emphasises that only through collective endeavours can we navigate through the challenging times that face us.

    “Already, the painstaking and robust interventions undertaken by our team of experts in fulfilling the mandate we gave to the STC is a clear manifestation of the African spirit of solidarity,” Edun said.

    He said that in the past few years, Africa ‘s economy had experienced significant challenges.

    He listed such challenges to include poverty and inequality, dependence on aid, global competitiveness, periodic debt crisis, small sizes of its economies, and climate change.

    “We can overcome these challenges collectively by building a strong economy and using reforms to strengthen the economic management systems of our continent,” he said.

    The News Agency of Nigeria (NAN) reports that Dr Hanan Morsy, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa, was also present at the meeting.

    Others are Prof. Kevin Urama, Chief Economist, African Development Bank; Dr George Elombi, Executive Vice President, African Export-Import Bank, and Amb. Albert Muchanga, Commissioner for Economic Development, African Union.

    There was also Mr Neal Rijkenberg, First Vice-Chairperson, of the Bureau of the STC, and Minister of Finance, Kingdom of Eswatini.

    (NAN)

  • Why Nigerians should not ‘Japa’, by Cardoso

    Why Nigerians should not ‘Japa’, by Cardoso

    Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has advised Nigerians to reconsider emigrating abroad, popularly referred to as “Japa.”

    Speaking during his keynote address at the 59th annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, Cardoso assured citizens that the CBN is working towards creating an economy where individuals and businesses can thrive.

    He emphasised the importance of collective effort in building a prosperous nation and urged Nigerians to stay and contribute to its development.

    He said: “It is not a good idea to japa at this stage.

    “Two reasons. One, those who may decide they are going to do that, they will sell and get rid of their assets.

    “You’ll be doing it for cheap. Predators, who are outside looking for bargains, will come and take it and pocket it, put it in their pocket and wait for the turnaround and sell it away.

    Read Also: Exchange rate not true value of naira, says Cardoso

    “Number two, you want to be part of the solution. You want to be part of the solution, and this is time that we need all hands on them.

    “There are opportunities in the market today, which I must say, from my experience over the past year and also for the past six months, a lot of interest from the outside in what is going on in Nigeria

    “In taking positions in certain assets, so they see the opportunity, and we, who are here, should be part of the solution for the better things which will come.”

    While acknowledging the severe impact of the reforms on Nigerians, Cardoso said the reforms are focused on tackling challenges of today and on securing the opportunities of tomorrow with the aim of building an economy where everybody thrives.

    He said: “We are building an economy where every individual, every business, and every community can thrive.

    “This vision will not be achieved by one institution alone. It requires all of us — banks, regulators, businesses, and citizens — to work together with steadfast resolve”.

  • Exchange rate not true value of naira, says Cardoso

    Exchange rate not true value of naira, says Cardoso

    • ‘Inflation decline will lead to interest rate cut’ •CBN to sanction banks for poor service quality, cash hoarding at ATMs

    The Central Bank of Nigeria (CBN) has said the current exchange rate for the naira does not reflect the true value of the local currency.

    CBN Governor, Olayemi Cardoso, broke the news yesterday at the 59th Bankers Night organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

    The naira exchanges at  N1,720 to dollar at the parallel market, and below N1,663 to dollar at the official window.

    He said the current US dollar exchange rate reflects the price that the most desperate buyers are willing to pay, and this, in the apex bank’s view, does not represent the true market value of the naira.

    The CBN boss said the apex bank expects that the introduction of the electronic marketing system will correct these distortions by enhancing price discovery process for the naira.

     Additionally, he stated that the move will significantly boost the Central Bank’s oversight and integration capabilities, ensuring a more stable and transparent foreign exchange market.

    He said the exchange rate has since June been relatively stable. He also refuted disinformation circulating about a supposed demand supply gap in the FX market, which he said was truly unnecessary.

    Cardoso also stated that an FX market defined solely by when and how the Central Bank buys or sells dollars is inadequate for the needs of a dynamic economy like Nigeria’s.

    “Now is the time for banks to step up to their intermediation and market making responsibilities providing customers with the right solutions to run their businesses and manage risk effectively, ” he said.

    Speaking on interest rate hike, he said the interest rate cut will commence once inflation begins so show signs of decline.

    He said that inflation has shown signs of decline, and that the apex bank will take steps in 2025 to ensure that inflation decline is achieved.

    The apex bank boss also said the CBN will begin to sanction banks for poor service quality, and failure to load cash at Automated Teller Machine (ATM) points.

    He said spot checks on banks will commence on December 1, 2025,and any bank found not meeting expectations, will be punished.

    He said banks have been fined N29 billion for regulatory breaches, and the apex bank  will continue to ensure compliance by the financial institutions.

    Cardoso said the market has also supported over $9 billion in capital outflows over the past year as investors were able to freely repatriate capital and dividends without the need to wait for several months as experienced in the past.

    “We anticipate more diaspora remittances in the coming year with a target of $1 billion monthly inflows from the diaspora, ” he said.

    He said that improving transparency, and strengthening the Central Bank’s credibility and public trust in policies  enable businesses and investors to plan, and reassures households that monetary decisions are made in their interests.

    It also ensures accountability through open communication and constructive feedback.

    “And I must say at this point that a good number of the things that we have done in the Central Bank over the past year have come as a result of dialogue, listening to the people,” he stated.

    Read Also: Cardoso: CBN will deploy necessary tools to battle inflation

    He said the apex bank’s commitment to openness extends beyond data reporting. It fosters an inclusive dialogue with all Nigerians, providing the tools to engage in economic decisions and build a resilient and informed society.

    “As previously noted, the Central Bank’s return to orthodox monetary policy means that we will refrain from direct intervention in development finance initiatives that said, I am pleased to report that as of October 2024, nearly N1 trillion has been recovered or repaid under previous development finance program, thanks to the enhanced monitoring,” he said.

    Cardoso said that in the foreign exchange market, the CBN faced a backlog of over $7 billion in unfulfilled commitments and a fragmented FX regime characterized by multiple forex rates, which had encouraged arbitrage opportunities.

    This regime stifled much needed foreign investment, and led to the depletion of our external reserves which fell to $33.22 billion in December 2023.

     ” It must also be understood that the cost of the FX subsidy regime is estimated to far exceed that of fuel subsidies. In 2022 alone, the potential revenue lost due to a less flexible FX regime was approximately N6.2 trillion, compared to N4.5 trillion from fuel subsidies, ” Cardoso said.

    “These funds could have significantly contributed to critical investments in education, healthcare, and infrastructure development, ” he said.

  • Cardoso: CBN will deploy necessary tools to battle inflation

    Cardoso: CBN will deploy necessary tools to battle inflation

    Central Bank of Nigeria (CBN) Governor Olayemi Cardoso yesterday affirmed that the Federal Government is prepared to deploy all tools to rein in inflation.

    The CBN, Cardoso said, is prepared to use whatever “tools at our disposal” to manage inflation.

    Annual inflation in Africa’s most populous country accelerated in September for the first time in three months, reaching 32.70 per cent, spurred by higher food and energy costs, according to the National Bureau of Statistics (NBS).

    Price pressures have been exacerbated by the government’s decision to stop the payment of subsidies on petrol and electricity to float the naira.

    Cardoso told the FT Africa Summit in London that while he expected headline inflation to moderate in the coming months, food inflation was “proving stickier’ assuring that the apex bank was working closely with the government to address the issue.

    Nigeria must not slack in its reform drive as it is beginning to attract ‘growing and serious interest’ from foreign investors, Cardoso said, citing recent visits to the country by Citigroup Chief Executive Officer (CEO) Jane Fraser and JPMorgan’s Jamie Dimon.

    “There’s an enormous amount of interest now, recognizing the fact that the Nigerian currency is relatively moderated and has made our economy a lot more competitive,” he said.

    The naira is worth only a quarter of its value when Tinubu took office, while fuel prices are five times higher.

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    Cardoso said measures introduced by the CBN to restore investors’ confidence were working and that there were now “minimal” complaints about lack of access to foreign exchange (forex) compared to “before, when only a handful of people could get it”.

    “Now, the market is a lot deeper… and it (forex) is available,” he said.

    Gross forex reserves now stand above $40 billion and Cardoso said that the apex bank would share details about the net reserves regularly from early 2025 in the interests of greater transparency.

    He said that economic growth might remain moderate next year, in line with a World Bank estimate for 2025 of around 3.6 per cent, up slightly from an expected 3.3per cent this year.

    “With the reforms that are being taken right now, it will put Nigeria in a far better position to see the increase on the growth side,” the CBN boss said.