CBN Governor Stresses Need for Economic Reform Consistency

At the 7th Africa Emerging Markets Forum held in Abuja, Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), discussed the critical need for Nigeria to preserve the gains from its recent economic reforms. He noted that the next phase of reforms could be more consequential than previous decisions that led to relative macroeconomic stability.

Cardoso stressed the importance of restraint, consistency, and continuity in policy to ensure that the reforms become a foundation for investment, production, and job creation. During a fireside conversation with Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation, he stated that economic credibility must be continuously earned through consistent actions.

Cardoso pointed out that the CBN had made significant strides in unifying the exchange rate, restoring price discovery, and enhancing transparency in the foreign exchange market, which have begun to yield positive results, including moderated inflation and a stronger financial system. However, he warned that these gains are vulnerable to policy reversals.