Nigeria Aims for $1 Trillion GDP in 8 Years through Economic Reforms, says Cardoso

Despite falling short of the 20:2020 target to achieve a $900 billion gross domestic product (GDP) in Nigeria, the country now has its sights set on expanding its economic stature to $1 trillion within the next eight years.

Yemi Cardoso, the newly-appointed governor of the Central Bank of Nigeria (CBN), expressed confidence in the economic policy proposals of President Bola Tinubu’s administration, believing that they can propel the country’s GDP to the one-trillion-dollar mark within eight years.

Cardoso made this announcement during the 2023 World Bank/IMF Annual Meetings held in Marrakesh, Western Morocco. He emphasized that ongoing efforts are in place to reposition the CBN for holistic economic growth, and the government will identify fiscal reforms and growth targets necessary to reach this ambitious goal within eight years.

In his address, Cardoso cited a study of emerging markets that pointed to Nigeria’s economic trajectory, contingent on the faithful implementation of the proposed economic reforms. He highlighted that indicators such as moderate inflation, substantial foreign reserves, and the capacity to rebound swiftly from economic downturns characterize economies exceeding the one-trillion-dollar GDP mark.

Cardoso further stressed the need to redefine the roles of the CBN and demarcate the lines between monetary policy and fiscal interventions. He suggested that the CBN should transition from its direct involvement in development financing to assume a more advisory role, providing support for economic growth.

He outlined several roles for the CBN, including facilitating the creation of specialized institutions and financial products for emerging sectors of the economy and devising new regulatory frameworks to unlock dormant capital in real estate holdings. The CBN should also accelerate access to consumer credit and expand financial inclusion while mitigating risk to encourage private sector investment in various areas.

Cardoso acknowledged that the CBN cannot instantaneously resolve the multifaceted challenges facing Nigeria’s economy, listing issues like corporate governance lapses, unconventional monetary policies, foreign currency management, unorthodox use of Ways and Means spending, and a backlog of foreign exchange demand.

He underlined the importance of in-depth examination by the new CBN leadership team to assess existing mechanisms, make necessary adjustments, or introduce innovative solutions. Furthermore, issues of governance must be addressed.

Despite the enormity of these challenges, Cardoso expressed optimism that with focused leadership and sustained reforms, Nigeria will experience positive outcomes over time. The country can expect increased investments, job creation, and improved opportunities for its citizens, ultimately leading to a more prosperous future.

Cardoso also highlighted President Tinubu’s commitment to cleaning up the CBN and its monetary policies. As part of these efforts, the president appointed a special investigator to examine the CBN’s affairs and appointed new leadership to steer the CBN in the right direction.