… reiterates $1bn remittance target

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso on Thursday, reflected on the apex bank’s journey under his watch in the last one year affirmed commitment to realizing the $1billion remittance target.

Cardoso who was appointed by President Bola Ahmed Tinubu as replacement for former CBN governor Mr. Godwin Emefiele, unequivocally noted that the centerpieces of his reform was the CBN’s new 2024-2028 Corporate Strategy, branded with the values of Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT).

He outlined critical milestones in the Bank’s ongoing economic reform agenda, including a new target to increase foreign remittances to $billion monthly.

He made this announcement in his keynote address at a symposium on economic reforms and the unveiling of the compendium, “Promoting Stability in an Era of Economic Reforms: The Journey So Far”, in Abuja on Thursday, November 7, 2024, marking the first anniversary of the Bank’s management team.

Reflecting on the transformative policy actions of the past year, Mr. Cardoso emphasised the CBN’s steadfast commitment to stabilising the economy, curbing inflation, and restoring investor confidence.

He noted that the event was not a celebration but an acknowledgement of the Bank’s milestones achieved in the past year, despite the crisis that prevailed when he and his team assumed office in 2023.

He described the past year as one of the Bank’s most challenging yet transformational, as the Bank had been able to address the credibility deficit it faced at the time.

According to Governor Cardoso, the reforms had started to yield positive results, including marked improvements in the FX market and a stabilisation of foreign reserves, which have now surpassed the $ 40 billion mark, the highest in 33 months.

While noting that inflation remained elevated, he said it was on a downward trend, signalling that the reforms were taking hold in restoring market equilibrium and fostering growth.

He detailed the inherited economic challenges, such as the GDP growth slowdown to 2.31% in Q1 2023, a significant decline from earlier years, and a sharp rise in inflation to 24.1% by mid-2023.

He noted that the CBN had confronted these pressures with a robust policy response in the past 12 months, prioritising measures to enhance stability in the foreign exchange (FX) market, improve monetary policy and curb inflation.

To address the fiscal deficit, he highlighted the impact of the “Ways and Means Advances” by the CBN, which reached N22.7 trillion by mid2023, necessitating urgent action.

He also addressed the country’s capital importation challenges, with foreign direct investments and portfolio investments falling dramatically over the past decade.

Further speaking, the Governor acknowledged the adverse effects of multiple exchange rate windows, which encouraged arbitrage, reduced foreign investment, and led to a backlog in FX settlements.