Nigeria Better Positioned to Withstand Global Economic Shocks – Cardoso
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has expressed confidence that Nigeria is now better equipped to withstand emerging global economic shocks due to the macroeconomic reforms and policy buffers implemented over the past two years.
Cardoso gave the assurance in Lagos while delivering the annual Distinguished Alumni Lecture of the St. Gregory’s College Old Boys Association as part of the school’s Founders’ Day celebration. The lecture, titled “Strong Foundations: From the Classroom to the Capital Base,” highlighted the importance of strong institutional and economic foundations in navigating periods of uncertainty.
According to the CBN governor, the current geopolitical tensions linked to the United States–Israel conflict with Iran could trigger higher energy prices, disrupt supply chains, and heighten risk aversion among global investors. However, he stressed that reforms undertaken since 2023 have strengthened Nigeria’s resilience.
“The storms may come, but our house will stand firm. Strong foundations matter—whether for individuals, institutions, or nations,” Cardoso said.
He noted that the reforms introduced by the CBN, including a return to orthodox monetary policy and structural adjustments in the financial sector, were designed to restore macroeconomic stability and rebuild investor confidence.
Cardoso revealed that the banking recapitalisation programme launched in 2024 had recorded significant progress. As of March 12, 2026, 33 banks had raised additional capital, while 30 had already met the new minimum capital requirements for their licence categories. The remaining institutions are undergoing routine verification by the CBN.
He added that the exercise had begun to attract renewed interest from international investors, with major investment announcements expected later this year.
The CBN governor also highlighted progress in the fight against inflation, noting that tight monetary policy had helped reduce inflation from a peak of about 34 per cent to around 15 per cent, with a long-term target of achieving single-digit inflation.
Cardoso further emphasised improvements in the foreign exchange market, stating that the elimination of multiple exchange rates had significantly reduced distortions and improved transparency.
“Through deliberate policy actions, we eliminated the system of multiple exchange rates that previously benefitted only a privileged few,” he said, adding that the premium between official and parallel markets had dropped from about 50 per cent in 2022 to less than two per cent in 2025.
He said Nigeria’s external reserves had also strengthened, recently surpassing $50 billion, reflecting improved balance of payments and increased investment inflows. In addition, capital and investment flows into the country rose by almost 200 per cent between 2023 and 2025.
Cardoso stressed that the CBN was also strengthening regulatory frameworks for Nigeria’s rapidly growing fintech ecosystem, including stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) standards to ensure sustainable innovation.
Meanwhile, stakeholders at a policy dialogue in Abuja organised by Agora Policy in collaboration with the Nigerian Economic Summit Group acknowledged the need for ongoing reforms but expressed concern over their social and economic impacts.
Director-General of the Lagos Chamber of Commerce and Industry, Chinyere Almona, said reforms such as foreign exchange liberalisation and fuel subsidy removal had corrected major distortions in the economy but had also created a difficult operating environment for businesses.
She noted that many firms were grappling with rising energy costs and declining consumer demand, urging government to channel savings from subsidy removal into infrastructure, particularly power, and to expand support for small and medium-sized enterprises.
Other participants at the dialogue, including representatives from civil society and international development institutions, stressed the need for stronger social protection measures to cushion the effects of reforms on vulnerable Nigerians.
Deputy Governor for Economic Policy at the CBN, Muhammad Sani Abdullahi, said the reforms were necessary to prevent a deeper economic crisis, noting that the country had previously faced severe macroeconomic pressures, including low reserves and significant foreign exchange backlogs.
Senior Economist at the World Bank, Samer Matta, also supported the reforms, warning that Nigeria could have faced a crisis similar to that experienced by Sri Lanka without decisive policy action.
Despite acknowledging the short-term hardships, government officials maintained that the reforms were already restoring macroeconomic stability and would ultimately lay the groundwork for sustainable and inclusive economic growth.