Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has said the naira has become increasingly competitive on the back of monetary reforms, positioning it to drive Nigeria’s non-oil exports and rebalance the economy.

Speaking with journalists in Abuja after the Monetary Policy Committee meeting, Cardoso described the relative stability of the naira in recent months as a sign of underlying strength and a reflection of investor confidence in the current policy direction.

“Our foreign reserve numbers went up from slightly over $3 billion to about $23 billion… that’s a quantum leap.”

He attributed this rise in reserves to improved transparency, confidence from global markets, and the government’s efforts to let market forces determine the exchange rate.

Cardoso said Nigeria’s current exchange rate regime, although painful at the onset, had removed distortions and incentives for currency arbitrage, and would now enable exporters to operate on a more level playing field.

“We obviously have been through a long period of instability, and I think that clearly what is being recognised is that the Nigerian economy is now stable and there’s interest in those who want to invest to now invest. Clearly, the inflation numbers speak for themselves, and we’ve discussed that here, mentioned that here. They speak for themselves. The overall trajectory is in the right direction. Not one particular aspect of managing the economy is a bullet that will solve all the problems.”

He added that the naira is now more competitive, a development that should naturally stimulate growth in Nigeria’s export sector.

“This should encourage more exports if we continue in the trajectory. I am very optimistic.”
According to the CBN Governor, monetary policy decisions taken by the apex bank have restored stability in the foreign exchange market, drawing praise from key economic actors.

“Given the relative stability in the foreign exchange market, members urge the bank to sustain the implementation of the ongoing reforms to further boost the economy,” Cardoso said.

The CBN also credited the improved policy environment with creating buffers that protected the naira during recent international currency pressures, which saw other currencies fall sharply while Nigeria’s remained stable.

With rising investor interest, growing reserves, and reforms in the remittance and capital markets space, the CBN is optimistic that the naira will now play a productive role in Nigeria’s growth story, particularly through the expansion of local industry and cross-border trade.

Ozioma Samuel-Ugwuezi

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