Cardoso: FX Stability, Disinflation, Foreign Reserves Accretion Have Restored Investor Confidence, Reserves Rise to $46.7bn
Cardoso: FX Stability, Disinflation, Foreign Reserves Accretion Have Restored Investor Confidence, Reserves Rise to $46.7bn
Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, yesterday declared that the Nigerian economy had been transformed in the past two years, driven by bold reforms and decisive actions that had restored confidence in the economy and laid the foundation for long-term stability.
As a result, Cardoso said the exchange rate had stabilised, with the naira continuing to strengthen, while the spread between the official and bureau de change rates were below two per cent.
Speaking at the 20th Anniversary Colloquium Lecture of the Monetary Policy Department (MPD) in Abuja, Cardoso said the stability had restored investor confidence and reduced uncertainty for households and firms.
Vice President Kashim Shettima stressed Nigeria’s readiness to do business with the rest of the world, saying ongoing reforms undertaken by the administration of President Bola Tinubu across different sectors are opening new opportunities for investment. Shettima spoke when he received in audience a delegation from Advanced Energy Partners (AEP), led by Chairman of the consortium, Senator Abu Ibrahim, at State House, Abuja.
The vice president said, “There is no better time to invest in Nigeria. You have come at the right time, where we have been blessed with committed leadership.”
He outlined the abundant resources and potential across Nigeria, saying the Tinubu administration, through specific policies and interventions, is creating an enabling environment for the economy to grow and attract foreign direct investment (FDI).
Shettima told the delegation, “Be rest assured that you have invested your trust in the right nation. Nigeria is ready for business. We have crossed the Rubicon and are now on the path of sustainable development.”
Cardoso stated that inflation had moderated significantly to 16.05 per cent in October 2025, from a peak of 34.6 per cent in November 2024, marking seven consecutive months of disinflation, the lowest in three years.
The CBN governor added that core inflation had also begun to soften, suggesting that the cumulative effect of tight policy settings is transmitting through the economy.
He said the foreign reserves had risen to $46.7 billion, as of November 14, 2025, providing 10.3 months of import cover in goods and services, supported by sustained inflows and renewed investor participation across various asset classes.
Cardoso said, “This accretion reflects investor confidence in our policies leading to improved oil receipts, stronger balance of payments, and renewed foreign portfolio inflows.
“On the back of this confidence, all the three top international ratings agencies upgrade Nigeria, with the latest by S&P Global Ratings, which revised our sovereign outlook from stable to positive.
“This recognition reflects the impact of sustained reforms that have placed our economy on a more resilient path.”
Represented by CBN Deputy Governor, Economic Policy Directorate, Dr. Muhammad Sani Abdullahi, Cardoso said the progress was complemented by Nigeria’s removal from the Financial Action Task Force (FATF) Grey List, marking another significant milestone in restoring international confidence in the financial system.
He said, “This achievement demonstrates our full alignment with global standards on anti-money laundering and counter-terrorism financing, further unlocking opportunities for foreign investment and trade finance.
“Together, these measures have created a more competitive currency, improved trade balances, and strengthened the foundation for inclusive development.”
He added, “While we acknowledge these contributions, the department must remain agile and forward-looking.
“It should deepen its analytical capacity, strengthen modelling tools, and continue to embrace innovation to ensure that the bank is well-positioned to respond effectively to emerging macroeconomic challenges.
“This includes leveraging technology, big data, and advanced analytical techniques to improve policy outcomes.”
The central bank governor stated that one of the most significant tasks ahead was successful transition to a full inflation-targeting regime. He said this was not merely a technical adjustment, but a strategic imperative for anchoring expectations and sustaining price stability.
However, Cardoso commended the MPD for its efforts in this direction and urged that these efforts be accelerated.
He said, “Inflation targeting will enhance transparency, improve credibility, and strengthen the effectiveness of monetary policy transmission.
“I also commend the department for organising this lecture and for the choice of the topic. It underscores the importance of continuous learning and intellectual engagement in shaping policy.
“I expect that the insights shared will inspire robust discussions and inform strategies that will guide the bank in navigating the next phase of its evolution.”
He added, “As we celebrate this milestone, let us remember that our ultimate goal extends beyond technical achievements. It is about building a resilient economy that fosters growth, creates jobs, and delivers shared prosperity.
“Monetary policy must remain credible, coherent, and adaptive to changing realities.
“To the monetary policy department, I say: congratulations on this anniversary. Your contributions have been valuable, but the journey ahead requires even greater commitment, creativity, and collaboration.
“Continue to innovate, continue to strengthen coordination, and continue to uphold the highest standards of professionalism.
“To our partners, past and present staff, and all stakeholders, thank you for your support and dedication. Together, we will ensure that the central bank remains a beacon of stability and progress.”
Cardoso said, “As we mark 20 years of the Monetary Policy Department, let this occasion serve as both a celebration and a call to action.
“The challenges ahead are formidable, but with discipline, foresight, and unity of purpose, we will overcome them.”
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