By Chukwuma Umeorah
The Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso, has attributed the attainment of $42.35 billion external reserves to the clearing of the country’s huge foreign exchange backlog and restoring of transparency to the market.
Speaking at the CBN Annual Lecture Series with the theme: “Next Generation Leadership in Monetary Policy and Nation Building,” held at the Lagos Business School over the weekend, Cardoso said credibility was the first principle he embraced on assuming office.
“When I took office, I made a promise. We would clear the verifiable backlog of monies owed by Nigeria to third parties. To be honest, I had no idea how we were going to do it, but it was not negotiable. We needed to protect and maintain our integrity,” he told the audience.
According to him, the backlog uncovered through a Deloitte forensic audit revealed widespread irregularities in some forward contracts. Though the debt was not inherited under his watch, Cardoso insisted that settling it was critical for the nation’s reputation.
“If we expect people to trust and invest in our economy, we must keep our promises. That action contributed in no small way to the rise in our reserves. People invest when they see credibility and transparency,” he posited.
Cardoso further highlighted reforms introduced to rebuild confidence in the apex bank. These included regular publication of audited financial statements, open televised Q&A sessions after each Monetary Policy Committee meeting, and the disclosure of Nigeria’s net reserves position at the end of 2024.
“Many doubted we would publish the net reserves figure. But we gave a date, we delivered, and that gave investors confidence in the CBN.
“The system makes rates and transactions visible to all. The market has become more transparent, eliminating the situation where some had privileged access to FX while others did not,” Cardoso added.
The CBN Governor stressed that his mission was to ensure that Nigerians could do business without needing powerful connections. “By the time I leave the Central Bank, you won’t need to know anybody to get your business going. Today, most Nigerians can use their naira debit cards abroad, something unthinkable two years ago,” he enthused.
The Dean of Lagos Business School, Professor Olayinka David-West, praised Cardoso’s transparency drive, describing the lecture as a demonstration of promises he made during his Senate confirmation hearing.
Leave a comment