Policy Reforms Restoring Investor Confidence, Says CBN
The Central Bank of Nigeria (CBN) has said its ongoing policy reforms are beginning to restore investor confidence and strengthen stability in the nation’s economy.
CBN Governor, Olayemi Cardoso, made this known during a recent discussion at the Lagos Business School, where he highlighted the bank’s efforts to rebuild credibility, improve transparency, and attract sustainable investment into Nigeria’s financial system.
Cardoso explained that when he assumed office, the economy faced significant challenges, including distortions in the foreign exchange (FX) market, accumulated FX backlogs, and inflationary pressures.
He noted that the CBN’s reform agenda has focused on reversing these trends through sound monetary policies and institutional restructuring.
According to him, key measures undertaken include the unification of Nigeria’s FX windows to create a more transparent and market-driven exchange rate system, the gradual exit of the CBN from quasi-fiscal activities, and the recapitalisation of banks to ensure greater resilience in the financial sector.
The apex bank is also transitioning toward a formal inflation-targeting framework to anchor expectations and strengthen macroeconomic stability.
In addition, Cardoso emphasized that the CBN has resumed the publication of its financial statements — a move he said demonstrates renewed commitment to transparency and accountability.
He expressed optimism that these steps are already yielding results, as seen in improved investor sentiment and growing foreign participation in key sectors.
Economic analysts have also acknowledged the positive direction of the reforms, noting that the shift to more orthodox monetary policy has started to ease uncertainties in the market.
Reports from Reuters and other financial outlets indicate that Nigeria’s recent policy consistency has boosted oil investment activities and contributed to a payments surplus earlier in the year.
While the CBN maintains that confidence is returning, experts caution that sustained improvement will depend on maintaining stable inflation, consistent FX liquidity, and disciplined policy execution. Still, with these reforms gaining traction, the apex bank believes Nigeria is on the path to restoring macroeconomic balance and strengthening its investment climate.
