CBN Reforms Lead to 200% Surge in Capital Inflows

Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), disclosed on Thursday in Lagos that the recent foreign exchange (FX) reforms have significantly boosted capital inflows, which are projected to increase by nearly 200% from 2023 to 2025. During a distinguished alumni lecture at St. Gregory's College, Cardoso emphasized that these reforms are designed to eliminate distortions in the FX market, enhance transparency, and restore stability to Nigeria's financial system.

He noted that the measures have already delivered tangible results, reshaping the FX market by reducing long-standing inefficiencies and increasing liquidity. The reforms are part of a broader macroeconomic adjustment aimed at addressing structural challenges in Nigeria's FX market, including the unification of the exchange rate system and improved price discovery.

Additionally, the CBN has tightened monetary policy to combat inflation and strengthen macroeconomic stability, which is intended to rebuild trust in the financial market and better position the economy to withstand global shocks.