Cardoso Eyes $1bn Foreign Remittances, Unveils One Year Scorecard

• Admits Nigeria lost N6.2trn revenue on exchange rate crisis in 2022

BY COBHAM NSA – Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, says increasing foreign remittances to about $1 billion monthly remains an achievable target under the apex Bank’s ongoing economic reform agenda.

Upbeat about this new target, Cardoso said the current reforms are already yielding positive results, with marked improvements in the FX market and a stabilisation of foreign reserves, which have now surpassed the $40 billion mark, representing the highest figure in 33 months.

He spoke in Abuja at a symposium on economic reforms and the unveiling of the compendium, titled; “Promoting Stability in an Era of Economic Reforms: The Journey So Far”, to mark the first anniversary of the present CBN’s management team.

According to Cardoso, the apex Bank is fully committed to stabilising the economy, curbing inflation, and restoring investor confidence as part of its ongoing policy reform programme

He described the event as an acknowledgement of CBN’s milestones achieved in the past year rather than a celebration, given the challenges faced by the new team since assuming office in 2023.

Cardoso said the past year has been quite challenging yet transformational, with the Bank able to effectively address issues around credibility deficit facing it.

On its transformative policy actions in the last one year, Cardoso said the CBN’s remains steadfastly committed to reforms that would continue to drive Nigeria’s economy in the right direction, noting that inflation being on a downward trend, indicates the reforms are already effective in restoring market equilibrium and fostering growth.

Further detailing 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, Cardoso said the CBN had confronted these pressures with a robust policy response in the past 12 months.

These include prioritising measures to enhance stability in the foreign exchange (FX) market, improving monetary policy and curbing inflation in the country.

To address the fiscal deficit, Cardoso highlighted the impact of the “Ways and Means Advances” by the CBN, which reached N22.7 trillion by mid-2023, necessitating urgent action, even as he noted that Nigeria’s capital importation challenges, with foreign direct investments and portfolio investments have fallen dramatically over the past decade.

Furthermore, he acknowledged the adverse effects of multiple exchange rate windows, which encouraged arbitrage, reduced foreign investment, and led to a backlog in FX settlements, adding that “The revenue losses attributed to these exchange rate issues were estimated at N6.2 trillion in 2022 alone.”

Cardoso said responding to these disturbing issues, the CBN had undertaken a series of impactful reforms, including a recalibration of the Monetary Policy Rate (MPR), raising it by 850 basis points to 27.25%, alongside an increase in the Cash Reserve Ratio for commercial banks to 50%.

Also stressing that the policy adjustments were critical to addressing inflationary pressures and fostering a stable economic environment, the Governor said; “The centrepiece of the reforms was the CBN’s new 2024-2028 Corporate Strategy, branded with the values of Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT).”

He said as part of this strategy, the Bank has moved away from quasi-fiscal interventions and was committed to orthodox monetary policies and streamlined FX windows to restore market confidence, while also explaining that the CBN has implemented new Bureau de Change (BDC) operations guidelines to enhance regulation and minimise FX market disruptions.

Cardoso also highlighted the Bank’s drive to improve internal efficiency, leveraging a “Digital-First Initiative” that has automated key processes, reduced operational costs, and introduced data-driven tools for effective policy-making.

“The Integrated Data Collection and Sharing Portal (IDSP) and a new Investor Relations Unit were established to foster a transparent and data-centric environment that encourages investment and supports the Bank’s economic objectives”, he said.

Cardoso, while expressing optimism about the future, thanked his management team and the Bank’s staff for their cooperation, just as he called for “strong leadership, a unified vision, and collective resilience to address Nigeria’s challenges and pursue the nation’s economic aspirations.”

Governor of Lagos State, Mr Babajide Sanwo-Olu of Lagos State, who delivered a goodwill message at the occasion, commended the CBN’s management team for their dedicated effort toward stabilising the economy.

He said team’s commitment to self-assessment, willingness to critically review their performance, ask candid questions, and seek constructive feedback from industry stakeholders were quite commendable qualities required to move the Nation’s economy forward.

Governor Sanwo-Olu, who was with Governor Hope Uzodinma of Imo State at the event, stressed the importance of collaboration between fiscal and monetary authorities, underscoring the need for unified policymaking that communicates a cohesive goal and message to the public.

On his part, the CBN’s Deputy Governor, Economic Policy, Mr. Muhammad Sani Abdullahi, said the occasion was about recognising the apex bank’s emerging accomplishments and celebrating the collective journey the institution had undertaken as a unified team.

While reflecting on the challenges faced over the past year, Abdullahi noted that “each obstacle had offered valuable opportunities for learning, development, and growth, demonstrating the resilience of the Bank’s management and staff.”

He described the compendium’s unveiling as a focal point of the event, saying the book reflects the apex Bank’s “shared vision, dedication, and commitment to excellence in navigating a dynamic economic landscape.”

For him, the compendium outlines the values of collaboration, resilience, and determination that had driven CBN’s transformative journey.

Cardoso was appointed for a term of five years by President Bola Tinubu on 15th September 2023 and confirmed by the Senate as the 12th CBN Governor on 26th September 2023 to replace immediate past governor, Godwin Emefiele, who is currently facing prosecution on corruption charges.