Cardoso's Three-Year Tenure Boosts Nigeria's Reserves

Olayemi Cardoso was nominated by President Bola Ahmed Tinubu to serve as Governor of the Central Bank of Nigeria (CBN) on September 15, 2023. Upon assuming office, he faced an economy characterized by high inflation and severe foreign exchange distortions.

Over three years, Cardoso's tenure has emphasized monetary-policy orthodoxy and foreign exchange reforms, leading to a notable recovery in Nigeria's external reserves, which surpassed $54 billion, the highest level in over 18 years. The naira strengthened significantly, trading at approximately N1,326 per dollar on September 14, 2026.

One of Cardoso's key decisions was to unify the foreign exchange market, allowing market forces to determine the naira's value, which initially caused a sharp depreciation. Despite the challenges, the CBN's actions, including clearing outstanding FX obligations of about $7 billion, have been recognized by the International Monetary Fund as beneficial for improving FX-market functioning and macroeconomic stability.