CBN says reforms yielding significant results
Omeiza Bilal
Deputy Governor Economic Policy of the Central Bank of Nigeria (CBN) Mohammed Sani Abdullahi, said that the reforms embarked upon by the Bank are yielding significant results.
Sani Abdullahi, who said this at the Banks’ 2025 Monetary Policy Forum the reforms have led to a significant increase in diaspora remittances.
The CBN DG noted that diaspora remittances moved from N12.478 trillion in 2023 to N22.734 trillion at the end of third quarter of 2024. According to him, the figure is estimated to increase to N31.7871 at the end of the fourth quarter of 2024.
The forum had in attendance stakeholders in the financial system.
He said, “Notably, following these reforms, we have seen a significant increase in diaspora remittances from These, among others, would further strengthen supply of foreign exchange while ensuring stability of the naira.
“The liberalization of the foreign exchange market was a pivotal step towards unifying a highly fragmented system and reducing substantial premiums driven by speculative activities and market inefficiencies.”
“Prior to the adoption of a flexible exchange rate regime, the average exchange rate premium stood at an alarming 62.33 percent between January and May 2023. With the introduction of the flexible exchange rate regime, this premium was drastically reduced to an all-time low of 0.10 percent by June 2023, signaling significant progress towards market convergence.”
In his address at the event, Apex Bank Governor Olayemi Cardoso insisted that for its monetary policy measures, the country’s inflation rate would have crossed the 42 per cent mark.
According to Cardoso, “throughout 2024, the Bank implemented several bold policy measures across six MPC meetings, including raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent, increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1750 basis points to 50.00 percent, and adjusting the asymmetric corridor around the MPR.”
The Apex Bank boss noted that its reforms ensured financial system and macroeconomic stability through unified multiple exchange rate windows to enhance efficiency in the FX market.
This, he said, led to a rise in diaspora remittances through International Money Transfer Operators (IMTOs) by 79.4 percent as at September 2024 to $4.18 billion, compared to $2.33 billion in the same period of 2023.
Listing some of its achievements to include settling the FX backlog of $7 billion, restoring market confidence and improving FX liquidity among several others, Cardoso said, “These reforms reflect our commitment to creating an enabling environment for inclusive economic development. However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance.”
Looking ahead, Cardoso expressed optimism about Nigeria’s economic trajectory, emphasizing the country’s potential to achieve disinflation and broader financial stability. However, he stressed that bold and consistent policy measures are needed to consolidate recent gains.
“As we move forward into 2025, I am optimistic that we are in the process of turning a corner and that disinflation is within reach. However, we must remain committed to bold policy measures to consolidate our progress,” he affirmed.
“We have introduced a new minimum capital requirement for banks – effective March 2026 – to strengthen the resilience and global competitiveness of the banking sector, positioning it to support the $1 trillion economy,” he noted.
