Overview

Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) held a press briefing at the IMF 2024 meetings in Washington D.C. on April 20, 2024. He highlighted productive engagements with international policy counterparts, stakeholders, and Nigeria's investors. Key meetings included those with multilateral financial institutions, foreign investor groups, the US Chamber of Commerce, and leading International Money Transfer Operators (IMTOs). A collaborative task force was established to double remittance flows through formal channels into Nigeria in the short to medium term, reporting directly to the Governor. Since assuming office six months ago, Cardoso noted significant challenges such as inflation and FX market volatility. Relative stability has been achieved, particularly in the FX market, allowing a shift from crisis management to strategic planning in areas like improving ease of doing business, sustaining gains through efficient market systems, and boosting financial inclusion via technology and remote banking. In April, the naira became the best-performing currency globally, supported by bullish sentiment from international investors. FX market turnover reached levels not seen in over seven years. However, challenges remain: elevated inflation driven by rising food, transportation, and energy costs; security concerns in food-producing regions; and infrastructure issues. Inflation is rising at a decelerated rate and is expected to fall soon. The CBN has implemented policy reforms to address pressures. Cardoso emphasized a determined, sequenced approach to solving problems in collaboration with stakeholders, including fiscal counterparts. He reaffirmed commitment to orthodox monetary policy, noting that efforts are rebuilding trust and confidence in Nigeria's economy. The week was productive, with plans to translate discussions into tangible outcomes.

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