The Federal Government has insisted that Nigeria is now in a stronger position to absorb global economic shocks arising from the Middle East crisis and other external developments.
The Minister of Finance/Coordinating Minister for the Economy, Wale Edun, and the Governor of the Central Bank of Nigeria, Yemi Cardoso, reaffirmed this stance during a Friday press briefing at the ongoing Spring Meetings of the World Bank and the International Monetary Fund in Washington, DC, United States.
Speaking at the briefing, Edun said, “Nigeria came to this meeting with a clear message: our reforms are durable, self-sustaining. We are more resilient to global shocks, and we are focused on inclusive growth. Due to the reforms undertaken under the leadership of His Excellency, Mr President, Nigeria is well-positioned to withstand external shocks, such as the one we are witnessing at this time.
“Across our engagements this week, there has been strong recognition and commendation that Nigeria’s reform programme is strengthening our economic fundamentals and restoring confidence. This has placed us in a stronger and better position to withstand the ongoing situation described as the Israeli–US–Iran conflict.
“With the economy now operating a market-reflective foreign exchange regime and market-based pricing for petroleum products, adjustments are occurring relatively smoothly—without distorted controls, unsustainable subsidies, or a rapid depletion of reserves, based on the data available to the Central Bank of Nigeria.”
Edun added that this strengthened resilience was “widely acknowledged throughout the week at our various meetings, including at the International Monetary Fund, the World Bank, and in our engagements with other development partners and bilateral counterparts.”
Supporting the minister’s remarks, Cardoso said the CBN would remain committed to its reform path, stressing that “we are more determined to stay the course of our reforms,” given the progress recorded so far.
He explained that the government and the apex bank had managed to cushion the impact of external shocks, noting that ongoing reforms have helped moderate the effects of the Middle East crisis on Nigeria.
The CBN governor also disclosed that the bank successfully completed the recapitalisation exercise for Nigerian banks despite initial scepticism in some quarters.
Addressing concerns over legal challenges affecting some banks’ recapitalisation processes, Cardoso noted that the regulator was aware of the situation but emphasised that “Nigeria has moved on.”
On diaspora remittances, the CBN boss said, “the target is $1bn per month by the end of the year. Where are we now? We’re at roughly $600m per month.”
Regarding diaspora engagement, he stated, “You are correct to note that I have not addressed it directly, and that is deliberate for two reasons. First, we had a very significant engagement just a few weeks ago during the President’s official visit to the United Kingdom.
“At that time, we interacted extensively with the diaspora community, given that London remains a critical hub for Nigerians abroad. We have also held similar engagements in the United States on a number of occasions, and we felt those interactions were both necessary and impactful.”
More importantly, Cardoso noted that the Central Bank of Nigeria has already carried out much of the groundwork needed to ensure diaspora financial flows are efficiently channelled through the banking system.
“Our current focus is to encourage commercial banks to develop tailored products for the diaspora. Many of these banks already have a presence in key markets such as the UK and the US, and they understand the diaspora landscape far better at an operational level.
“As the central bank, our role is not to compete with these institutions, but to create an enabling environment. We have worked to remove key bottlenecks and ensure that Nigerians in the diaspora can transact seamlessly through formal channels. Initiatives such as facilitating access to the Bank Verification Number were driven by listening to stakeholders, identifying constraints, and addressing them in a practical way,” he stated.
