By Chukwuma Umeorah
Nigeria’s external reserves climbed to $42.35 billion this week, and Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, attributed it to the decisive move of clearing the country’s huge foreign exchange backlog and restoring transparency to the market.
Speaking at the inaugural CBN Governor Annual Lecture Series held at Lagos Business School at the weekend, Cardoso said credibility was the first principle he embraced on assuming office. The theme of the lecture was “Next Generation Leadership in Monetary Policy and Nation Building.”
“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.
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.
Describing the decision as a “huge sacrifice,” he said: “If we are a going concern, and 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.”
Cardoso highlighted reforms introduced to rebuild confidence in the apex bank. These include 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,” he said.
He also cited the adoption of a B-matching electronic trading system to boost transparency in the FX market. “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 noted.
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 already use their naira debit cards abroad, something unthinkable two years ago.”
He observed that investor confidence was returning after years of uncertainty. Comparing today’s outlook to two years ago, when “many Nigerians had lost hope” and were moving assets abroad, he said global investors now see new opportunities.
“We see an incredible increase in interest. Many who sat on the sidelines are now saying: This is the time to get in,” he revealed, pointing to development partners, international rating agencies, and top asset managers like BlackRock as showing renewed appetite for Nigeria.
Cardoso also spoke about the CBN’s future focus, noting that its board has embraced digitisation and artificial intelligence. He disclosed that the bank had developed a roadmap for digital innovation, including collaboration with the Securities and Exchange Commission on digital currencies.
“Two years of consistent messaging, consistent policies, and uncompromising execution have taken us to a good place. In one word, the future of Nigeria is bright,” he declared.
Earlier, 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.
The event drew key players in the financial sector, including CBN Deputy Governors, CEOs of leading banks such as Segun Alebiosu of FirstBank, Wole Adeniyi of Stanbic IBTC, Yetunde Oni of Union Bank, Miriam Olusanya of GTBank, Lawal Bolaji of Ecobank Nigeria, and Temi Popoola, Group CEO of the Nigerian Exchange.
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