Otedola Credits Tinubu, CBN Reforms with Renewed Investor Confidence in Nigeria
Billionaire investor and industrialist, Femi Otedola has attributed recent signs of economic stabilisation in Nigeria to what he described as decisive leadership by President Bola Ahmed Tinubu and disciplined monetary reforms under Central Bank of Nigeria (CBN) Governor, Yemi Cardoso.
Otedola, who has spent over three decades investing across key sectors of the Nigerian economy, said the administration’s policy direction reflects a strong grasp of the country’s structural challenges and long-term growth needs.
According to him, the current reforms, though initially difficult, are beginning to yield measurable results that are attracting both local and international attention.
He noted that Tinubu’s approach to economic management stands out for its clarity and willingness to confront long-standing distortions. In his view, the foundation laid by the President has enabled institutions like the CBN to pursue policies that prioritise sustainability over short-term political comfort.
Highlighting monetary policy, Otedola praised Cardoso for steering the apex bank back to orthodox practices, pointing to the gradual deceleration in inflation as evidence of policy discipline.
He said the easing inflationary trend is beginning to reduce pressure on households and businesses, stressing that consistency in policy is critical for economic recovery.
The business leader also identified reforms in the foreign exchange market as a major turning point, saying they have helped restore confidence that had been eroded for years.
He observed that the naira’s recent strengthening is being driven by market fundamentals rather than administrative controls, describing this as a crucial signal to investors.
He added that Nigeria’s external reserves, now reportedly above $46 billion, reflect improved credibility and prudent management.
On banking sector reforms, Otedola defended the controversial recapitalisation policy introduced by the CBN, stating that criticism of the move has not been borne out by subsequent developments.
He said the strong profits recorded by banks in 2024 have set the stage for 2025 to focus on consolidation and risk management, which he believes is necessary for banks to effectively support real sector growth.
Going further, Otedola called for a review of capital requirements for international banking licences, proposing an increase from ₦500 billion to at least ₦1 trillion.
He argued that an economy aspiring to reach the $1 trillion GDP mark requires stronger, better-governed financial institutions with broad ownership structures, rather than banks dominated by a few individuals.
He disclosed that FirstBank, the commercial banking subsidiary of First HoldCo Plc, has already met the ₦500 billion minimum capital requirement set by the CBN for international operations.
He added that FirstHoldCo shareholders remain committed to injecting additional capital into existing subsidiaries and exploring new business opportunities.
Describing Cardoso as the most effective CBN Governor Nigeria has produced, Otedola cited his calm leadership style, focus on fundamentals, and willingness to make tough decisions.
He urged the apex bank to remain steadfast, expressing confidence that the ongoing monetary reforms are positioning the country for more resilient and inclusive growth.
According to Otedola, Nigeria is at a critical juncture, and sustained support for credible economic reforms will be essential to securing long-term prosperity.
