ABUJA, Nigeria (VOICE OF NAIJA)-The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has linked the recent growth in the country’s external reserves to the settlement of the foreign exchange backlog and ongoing efforts to promote transparency in the FX market.
As of Tuesday, Nigeria’s external reserves had risen to $42.35bn.
Cardoso spoke on Friday during a fireside chat at the inaugural CBN Governor Annual Lecture Series, held at Lagos Business School with the theme, ‘Next Generation Leadership in Monetary Policy and Nation Building.’
The CBN recently completed the payment of verified FX backlogs after a Deloitte forensic audit exposed several irregularities in some forward contracts.
Cardoso explained that he made the decision to clear the backlog as part of his commitment to restore Nigeria’s financial credibility, even though the issue predated his administration.
“When I took office, I made a promise. We would clear the verifiable backlog of monies owed by Nigeria to third parties. To be honest, I had no idea how we were going to do it, but it was not negotiable. We needed to protect and maintain our integrity,” he said.
He described the move as a “huge sacrifice,” stressing that trust and credibility were crucial to attracting sustainable investments.
“If we are a going concern, and if we expect people to trust and invest in our economy, we must keep our promises. That action contributed in no small way to the rise in our reserves. People invest when they see credibility and transparency.”
Cardoso outlined several reforms introduced to strengthen confidence in the apex bank.
READ ALSO: CBN Forecasts Slight Decline In External Reserves For 2024
These include open and televised Q&A sessions after every Monetary Policy Committee meeting, regular publication of audited financial statements ending years of opacity and the disclosure of Nigeria’s net reserves position at the end of 2024, which surprised sceptics and reassured global investors.
“Many doubted we would publish the net reserves figure. But we gave a date, we delivered, and that gave investors confidence in the CBN,” Cardoso noted.
He also highlighted the adoption of a B-matching electronic trading system in the FX market to enhance transparency.
“The system makes rates and transactions visible to all. The market has become more transparent, eliminating the situation where some had privileged access to FX while others did not.”
Cardoso reaffirmed that his administration’s reforms aim to make it easier for businesses to operate without relying on personal influence or political connections.
“By the time I leave the Central Bank, you won’t need to know anybody to get your business going. Today, most Nigerians can already use their naira debit cards abroad, something unthinkable two years ago.”
He stressed that economic stability remained the core mandate of the CBN, noting that stability is key to attracting serious investors.
Reflecting on the country’s improved economic outlook compared to two years ago, when many Nigerians had lost hope and were moving assets abroad, he pointed out that rating agencies, development partners, and major investors such as BlackRock now show renewed interest in Nigeria.
“We see an incredible increase in interest. Many who sat on the sidelines are now saying: This is the time to get in.”
Cardoso also revealed that the CBN board has adopted digitisation and artificial intelligence strategies, holding a retreat focused on innovation and designing a roadmap for digital technology, including digital currencies, in partnership with the Securities and Exchange Commission.
Concluding his remarks, he expressed optimism about the nation’s economic direction.
“Two years of consistent messaging, consistent policies, and uncompromising execution have taken us to a good place. In one word, the future of Nigeria is bright.”
Earlier, the Dean of Lagos Business School, Professor Olayinka David-West, noted that the lecture series underscored Cardoso’s commitment to transparency and accountability, in line with promises made during his Senate confirmation.
The event drew top stakeholders, including CBN Deputy Governors, bank CEOs such as Segun Alebiosu (FirstBank), Wole Adeniyi (Stanbic IBTC Bank), Yetunde Oni (Union Bank), Miriam Olusanya (GTBank), Lawal Bolaji (Ecobank Nigeria), and Temi Popoola, GMD/CEO of the Nigerian Exchange Group.