CBN Governor Olayemi Cardoso said recent monetary and financial sector reforms have strengthened Nigeria’s ability to absorb external shocks and helped restore investor confidence, as authorities pivot from stabilisation to attracting long term capital.
In a statement issued March 19, the Central Bank of Nigeria said Cardoso spoke on March 18 at the Africa Capital Forum in London, held alongside Bola Tinubu’s state visit to the United Kingdom. The forum, themed “From Stabilisation to Capital Mobilisation,” was co-hosted with the UK Foreign, Commonwealth and Development Office.
Cardoso said policy tightening and institutional changes have improved macroeconomic buffers. “We have created stronger capacity to withstand shocks,” he said, pointing to foreign exchange reforms, banking sector recapitalisation and payments system upgrades.
The central bank has overhauled the foreign exchange market removing multiple controls and simplifying trade and investment processes through a new FX manual. Cardoso said the changes have improved transparency and liquidity, key concerns for offshore investors who had struggled with access and pricing distortions.
The governor also said the CBN has finalised a payments system vision aimed at strengthening Nigeria’s position in digital and cross border transactions, an area seen as critical for boosting non-oil inflows and supporting financial inclusion.
On banking sector reforms, Cardoso said more than 30 lenders have met new minimum capital thresholds, with verification ongoing for others. About 28 percent of recapitalisation funding has come from foreign investors, a signal of renewed confidence in the financial system.
Diaspora remittances have also increased, contributing to a broader mix of foreign exchange inflows. That diversification is central to reducing Nigeria’s historical dependence on oil receipts and improving resilience to external volatility.
Cardoso said inflation has begun to ease and exchange rate stability has improved following recent policy measures. He added that the CBN will maintain a tight stance to protect these gains. “Our focus is to preserve stability so investors and stakeholders can plan with confidence,” he said.
Deputy governor for economic policy Muhammad Sani Abdullahi said macroeconomic indicators point to a more stable environment, with foreign reserves above $50 billion and the currency market showing reduced volatility. He cautioned, however, that policymakers remain vigilant given global uncertainty.
Another deputy governor, Philip Ikeazor, said the reforms are designed to endure beyond the current administration, reflecting broader stakeholder alignment. That continuity is seen as important for sustaining investor confidence, particularly in a market where policy reversals have historically been a concern.
International partners signalled cautious optimism. Jonny Baxter said the next phase should focus on converting renewed interest into sustained capital inflows. The United Kingdom remains a key partner in Nigeria’s banking and capital markets, he added.
Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, said Nigeria’s economic stabilisation, demographics and adoption of technology make it an attractive investment destination.
From the export finance side, Steve Gray of UK Export Finance highlighted transparency as central to sustaining investor trust, noting that recent reforms are improving visibility and policy consistency.
Melis Ekmen Tabojer said policy changes are already shaping investor behaviour, influencing both capital allocation decisions and perceptions of risk.
Representing the federal government, Sanyade Okoli said Nigeria is now targeting “sticky” equity capital to finance growth, acknowledging that public resources alone are insufficient to meet investment needs.
Banking executives at the forum broadly backed the reforms, saying stronger capital buffers and improved policy clarity have enhanced their capacity to fund large scale projects.
The CBN’s message is that Nigeria has moved past acute instability and is now focused on mobilising capital. The challenge will be translating policy credibility into sustained inflows, particularly in a global environment marked by tighter financial conditions and investor selectivity.
For now, policymakers are betting that a combination of FX liberalisation, stronger bank balance sheets and improved transparency can anchor confidence and position Africa’s largest economy for a more durable recovery.