Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has called for stronger economic ties between Nigeria, the Middle East and the Nigerian diaspora community in the region to boost tourism, remittances and overall economic growth.
Cardoso made the call during a meeting with Talal Al-Humond, the Assistant Governor for Monetary Affairs at the Saudi Arabian Central Bank (SAMA).
The meeting took place on the sidelines of the inaugural Conference on Emerging Markets Economies, organized by the Ministry of Finance, Saudi Arabia and the International Monetary Fund (IMF) Regional Office in Riyadh.
During the meeting, Cardoso said it is important to learn from Saudi Arabia’s economic diversification strategies, particularly in infrastructural development and tourism.
He noted that Saudi Arabia’s commitment to large-scale transformation projects and tourism investments serves as a valuable model for Nigeria’s development ambitions.
According to him, “Saudi Arabia’s dedication to diversifying its economy through innovative environmental projects, large-scale transformation, and tourism investment is essential for development.”
The CBN governor also reaffirmed his commitment to working with the Nigerian diaspora community in the Middle East to enhance remittance flows and strengthen Nigeria’s financial sector.
He stated that the CBN remains focused on improving Nigeria’s macroeconomic fundamentals to create a favorable environment for private sector growth and high-quality job creation.
“The Central Bank of Nigeria (CBN) would continue enhancing macroeconomic fundamentals to establish an enabling environment that will facilitate the growth of the private sector and the generation of high-quality jobs for Nigerians,” Cardoso said.
In response, Talal Al-Humond assured Cardoso that the Saudi Central Bank would collaborate with the CBN to achieve shared economic objectives.
During a panel discussion moderated by Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, Cardoso explained the recent reforms in Nigeria’s financial markets.
He noted that these reforms had reduced distortions in the foreign exchange (forex) market.
He credited consistent policy direction, increased market confidence and enhanced transparency in forex trading for narrowing the exchange rate gap to approximately five percent.
“Due to consistent policy direction, improved market confidence, and enhanced transparency in forex trading, the gap significantly narrowed to approximately five percent,” Cardoso stated.
The CBN governor outlined measures taken to improve transparency, including the adoption of an electronic matching system for forex transactions and the introduction of a foreign exchange code of ethics, which all Nigerian banks signed to ensure compliance with market rules.
As a result of these reforms, he disclosed that Nigeria’s foreign reserves exceeded $40 billion, marking the highest level in nearly three years.
Cardoso acknowledged that Nigeria had faced several economic challenges, including capital outflows, multiple exchange rate regimes, currency depreciation, high inflation and a backlog of foreign exchange transactions.
He noted that upon assuming office, his administration prioritized clearing the forex transaction backlog and restoring market confidence to stabilize the economy.
“Upon assuming office, my team prioritized restoring confidence in the market by addressing the backlog of foreign exchange transactions and demonstrating a commitment to economic stability,” he said.
Cardoso further emphasized that the CBN adopted a tight monetary policy stance to combat inflation and restore macroeconomic discipline.
He noted that over the past year, the central bank raised interest rates by 850 basis points and ended quasi-fiscal interventions that had previously distorted the economy.
“Nigeria implemented a tight monetary policy stance to tackle inflation and restore macroeconomic discipline. Over the past year, the Bank raised interest rates by 850 basis points and shifted away from quasi-fiscal interventions that had distorted the economy,” he added.
