FX market needs less CBN intervention — Cardoso

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, says Nigeria’s foreign exchange market has become sufficiently liquid to operate with minimal intervention from the apex bank, attributing the development to ongoing monetary and exchange rate reforms.

Cardoso made the disclosure on Thursday during the BusinessDay CEO Forum in Lagos, where he said the reforms had improved market efficiency, strengthened investor confidence and allowed market forces to play a greater role in determining exchange rates.

He said Nigeria’s gross external reserves had risen organically to about $52bn, providing roughly 10 months of import cover, while net foreign exchange reserves had increased to approximately $40bn, boosting the country’s capacity to withstand external shocks.

According to him, the improved reserve position reflects the impact of policy measures introduced by the CBN to restore stability and confidence in the economy.

“The foreign exchange market is now liquid enough that only minimal intervention is required. You cannot be a nice guy in taking the difficult decisions to save the country. You have got to be disciplined and armed with integrity. Ultimately, in our business, it is about trust,” Cardoso said.

He stressed that rebuilding trust remained central to the apex bank’s mandate, adding that consistency and transparency in policy implementation had helped improve confidence among investors and market participants.

The CBN governor also said the bank was targeting monthly diaspora remittances of $1bn by the end of 2026, noting that stronger inflows would further improve foreign exchange liquidity and support exchange rate stability.

Cardoso disclosed that the ongoing banking sector recapitalisation had attracted about ₦4.65tn in fresh capital, strengthening lenders’ ability to finance larger projects, absorb economic shocks and support long-term economic growth.

He said the recapitalisation exercise formed part of a broader regulatory framework aimed at aligning Nigeria’s banking industry with global standards.

The CBN governor added that confidence had also returned to Nigeria’s payment system, with bank debit cards now functioning seamlessly for international transactions.

He expressed optimism that moderating inflation and lower interest rates would encourage banks to extend more credit to productive sectors of the economy, particularly small and medium-sized enterprises, while urging financial institutions to maintain strong risk management practices.

Cardoso called on Nigerian business leaders to take advantage of the improving macroeconomic environment and position themselves for emerging investment opportunities.

“Where we are now, we have achieved hard-earned stability. With stability comes the potential for investment, and with investment comes growth. All our local CEOs should be part and parcel of that train that is moving,” he said.