By 
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has credited the recent growth in Nigeria’s external reserves to the clearance of foreign exchange (FX) backlogs and ongoing reforms aimed at enhancing transparency in the FX market.
As of Tuesday, the nation’s reserves stood at $42.35 billion. Cardoso made the remarks during a fireside chat at the inaugural CBN Governor Annual Lecture Series held at the Lagos Business School, themed “Next Generation Leadership in Monetary Policy and Nation Building.”
The apex bank recently concluded the settlement of verified FX backlogs following a forensic audit conducted by Deloitte, which revealed significant irregularities in several forward contracts.
Cardoso explained that although the backlog predated his tenure, addressing it was crucial to restoring Nigeria’s financial credibility.
“When I took office, I made a promise — we would clear the verifiable backlog of monies owed by Nigeria to third parties. Honestly, I didn’t know how we would achieve it, but it was non-negotiable. We had to protect and uphold our integrity,” he stated.
He described the decision as a “huge sacrifice,” emphasizing that credibility and trust are essential to attracting sustainable foreign investment.
“If we expect people to trust and invest in our economy, we must keep our promises. That action contributed significantly to the rise in our reserves. Investors respond to credibility and transparency,” Cardoso added.
Highlighting reforms to strengthen confidence in the apex bank, Cardoso noted the introduction of televised post-MPC Q&A sessions, regular publication of audited financial statements, and the public disclosure of Nigeria’s net reserves position — a move that surprised sceptics and reassured investors.
“Many doubted we would publish the net reserves figure. But we gave a date, we delivered, and that boosted investor confidence,” he said.
He further mentioned the deployment of a B-matching electronic trading system in the FX market to promote transparency and equal access.
“The system ensures visibility of rates and transactions, removing privileged access and creating a level playing field,” he explained.
Cardoso reiterated that his reforms are designed to ensure Nigerians can conduct business without undue influence or favoritism.
“By the time I leave the Central Bank, you won’t need to know anybody to run your business. Today, most Nigerians can already use their naira debit cards abroad — something unimaginable two years ago.”
He reaffirmed that the CBN’s core mandate remains economic stability, noting that stability is the foundation for sustainable investment. Comparing the current outlook to two years ago, when many Nigerians were moving assets abroad, Cardoso said international interest in Nigeria is rebounding strongly.
“We’re seeing renewed confidence. Global rating agencies, development partners, and major investors like BlackRock are once again showing strong interest in Nigeria,” he said.
Cardoso also revealed that the CBN’s board has adopted a forward-looking approach, embracing digitisation and artificial intelligence, and is collaborating with the Securities and Exchange Commission (SEC) to develop a roadmap for digital innovation, including digital currencies.
Concluding, he expressed optimism about Nigeria’s economic trajectory:
“Two years of consistent messaging, steady policies, and uncompromising execution have brought us here. The future of Nigeria is bright.”
Earlier, Professor Olayinka David-West, Dean of Lagos Business School, commended the initiative, noting that the lecture series underscores Cardoso’s commitment to transparency and accountability, values he pledged during his Senate confirmation.
The event was attended by CBN Deputy Governors, leading bank CEOs — including Segun Alebiosu (FirstBank), Wole Adeniyi (Stanbic IBTC Bank), Yetunde Oni (Union Bank), Miriam Olusanya (GTBank), Lawal Bolaji (Ecobank Nigeria), and Temi Popoola (NGX Group) — alongside other key financial sector stakeholders.
Comments