The Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso, noted that current federal government reforms are attracting significant interest from foreign investors.
Cardoso spoke at the FT Africa Summit in London, emphasizing the importance of maintaining reform momentum.
He highlighted recent visits by notable figures, including Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon, as evidence of this growing interest.- Cardoso stated, “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.”
- Mr. Cardoso emphasized that ongoing reforms will significantly enhance Nigeria’s growth potential.
- The CBN is committed to tackling inflation using every available tool at its disposal.
- He mentioned that while headline inflation is expected to decrease in the coming months, food inflation remains persistently high.
- The central bank is working closely with the government to address inflation issues.
- Cardoso indicated that measures taken to restore investor confidence are showing positive results, with complaints about limited access to foreign exchange now “minimal” compared to previous times.
- Despite President Tinubu’s reforms being praised internationally, the domestic situation is challenging, with the worst cost of living crisis in a generation, as food inflation surpassed 40% and headline inflation rose consistently for 19 months before slowing down in July.
- Petrol prices have exceeded N1,000 per litre in several states.
- The federal government is considering a cost-reflective electricity tariff after removing the electricity subsidy for band A customers, which led to over a 200% increase in tariffs for about 15% of Nigerians.
- On Monday, the naira experienced a significant decline of 4.3%, reaching N1,670.65 per dollar, marking the largest drop since October 15.
- This decline followed a plunge in dollar liquidity, which fell by 72% to $81 million, the lowest level in over a month.
- Foreign exchange liquidity remains constrained as Nigeria aims to build its reserves, which reached $39.4 billion on October 24, the highest in nearly two years.
Cardoso announced that the central bank will start regularly disclosing details of net reserves from early 2025 to enhance transparency.
Economic growth is anticipated to remain moderate next year, with projections aligning with the World Bank’s forecast of approximately 3.6% for 2025.
This represents a slight increase from the projected growth of 3.3% for the current year.
