Governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso, has said that diaspora remittances are projected to rise to $1 billion monthly by the end of 2026.
Cardoso also urged domestic investors to take advantage of opportunities created by the ongoing reforms and improve macro-economic stability.
He spoke during a fireside chat hosted by the publisher and Editor-in-Chief of BusinessDay Media Limited, Mr Frank Aigbogun, at the 14th Annual BusinessDay CEO Forum in Lagos at the weekend.
The forum had as its theme, “rom Stability to Shared Prosperity”.
Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors confidence.
He identified exchange rate unification as one of the CBN’s major achievements under the reforms programme.
The CBN governor stressed that replacing multiple exchange rate windows with a market driven system eliminated distortions and improved transparency.
He added that improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently.
Cardoso added that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
He maintained that the reserves are designed to shield the economy from external shocks and excessive market volatility, adding that the reserves were not meant for routine interventions or day to day exchange rate management.
The CBN governor described diaspora remittances as a major contributor to rising reserves and foreign exchange stability.
He said the CBN deliberately targeted remittances to diversify reserve sources beyond oil earnings.
He insisted that the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He added that the CBN subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped doubled diaspora inflows within one year and exceeded initial expectations.
The remittances, he averred, according to him, had risen to more than $600 million at the latest reporting period.
He said that the CBN expected inflows to reach one billion dollars monthly by the end of 2026.
Cardoso projected that annual remittances could reach about $8 billion if the current momentum was sustained.
He said the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Cardoso also highlighted the return of international functionality to naira denominated payment cards, adding that the initiative improved convenience for Nigerians travelling and making payments abroad.
On bank recapitalisation, Cardoso said the exercise attracted between N4 and N5 trillion in fresh capital.
He said the additional capital had strengthened the resilience and lending capacity of Nigerian banks.
He further stressed that moderating inflation and lower interest rates would support increased lending to businesses and small enterprises.
He also urged banks to maintain prudent risk management while expanding credit to productive sectors.
Cardoso advised Nigerian business leaders to take advantage of improving economic conditions by investing locally, expressing joy that international investors had shown growing interest in Nigeria following recent reforms.
He said, “The time to invest is now because stability has returned and opportunities are expanding.”
Speaking on monetary policy, Cardoso said the Monetary Policy Committee remained guided by data in its decisions.
He said the committee would continue taking decisions that protect Nigeria’s long term economic interests.
Cardoso explained that global developments could influence future monetary policy decisions, citing the recent conflict involving the United States and Iran as an example of external risks facing economies.
He enthused that difficult policy decisions helped restore confidence during a period of severe economic stress.
He said Nigeria previously faced weak reserves and about $7 billion dollars outstanding obligations.
Cardoso said trust remained the foundation of central banking and sound economic management, reiterating that difficult reforms were necessary to secure the country’s future and promote shared prosperity.
Source: (NAN).