CBN reassures Global Investors of stable, growth-oriented business climate

The Central Bank of Nigeria (CBN) has reaffirmed the federal government’s commitment to sustaining reforms and creating a stable environment that encourages long-term foreign investment and economic growth.

Speaking at the Nigeria Investors Forum in Washington D.C. on Wednesday, held on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings, CBN Governor Yemi Cardoso assured investors that Nigeria’s economic fundamentals are strengthening, with external reserves rising to $43.4 billion — the highest in five years.

Cardoso emphasized that the CBN is working closely with the Ministry of Finance to maintain policy alignment, macroeconomic stability, and clarity for investors.

“Nigeria’s focus remains clear — we are consolidating our fundamentals, deepening reforms, and unlocking new opportunities for sustainable investment and inclusive growth,” he said.

He added that the progress achieved so far was a sign that the country’s ongoing reforms are laying a stronger foundation for a resilient and diversified economy.

CBN Deputy Governor for Economic Policy, Mohammed Abdullahi, echoed the governor’s optimism, noting that Nigeria’s foreign exchange inflows had seen significant improvement as a result of reform measures.

According to Abdullahi, the monthly turnover in the foreign exchange (FX) market increased by 56.4 percent to $8.6 billion in 2025, up from $5.5 billion in 2024. He said the improved FX supply was driven by order-based quotations, enhanced remittance inflows, and structural reforms in the FX market.

“Between January 2023 and July 2025, average net flows into the economy have doubled. The official window has witnessed stronger liquidity, while we have worked hard to clear outstanding FX backlogs and obligations,” Abdullahi stated.

He explained that capital inflows, which had declined by over 75 percent between 2019 and 2020, have rebounded significantly, strengthening Nigeria’s external position.

“Our financial markets are now deeper, more transparent, and increasingly functional. The CBN is currently a net buyer in the market and continues to rebuild external buffers to cushion against external shocks,” Abdullahi said.

He further disclosed that Nigeria’s gross external reserves — at $43.4 billion — can now cover approximately 11 months of imports, the highest level since 2020. He added that between 2024 and 2025, the apex bank released nearly $13 billion back to local and international banks to support the organic growth of reserves and enhance financial system resilience.

Also speaking at the forum, Special Adviser to the President on Finance and Economy, Sanyade Okoli, reaffirmed the federal government’s ambition to achieve a 7 percent economic growth rate by 2027–2028 through diversification and infrastructure investment.

“Our medium-term target is 7 percent growth by 2027 to 2028. When the IMF raised its forecast for 2025, we projected a 4 percent growth rate, increasing to about 5 percent next year. This reflects our economic resilience and reform momentum,” she said.

Okoli noted that 13 percent of economic sectors recorded growth above 7 percent in the second quarter (Q2) of 2025, a strong indicator of expanding diversification across the economy.

She further revealed that Nigeria’s dependence on oil exports continues to decline, dropping to 57.5 percent in the first half of 2025, compared to previous years. Oil’s share of GDP has also reduced to 4 percent, down from 8 percent in 2021.

“Our goal is to sustain this trajectory by mobilising investment into infrastructure, power, and digital technology through public-private partnerships,” Okoli said.

She explained that under the federal government’s highway development and management initiative, over 10 key road corridors have been identified for public-private partnership execution.

On power sector reforms, Okoli disclosed that Nigeria is partnering with the World Bank and the African Development Bank (AfDB) to mobilize around $32 billion in funding aimed at improving electricity access and reliability.

She added that ongoing digital infrastructure expansion, particularly fiber-optic coverage, would enhance nationwide connectivity and create opportunities for Nigerian youths.

With Nigeria’s macroeconomic landscape showing signs of stability, policymakers reiterated that consistent reforms and investor-focused collaboration remain critical to sustaining growth and investor confidence in Africa’s largest economy.