Cardoso seeks stronger economic ties with Middle East, highlights FX and banking reforms 

This is according to a press statement from the apex bank on Monday.

Speaking on the sidelines of the inaugural Conference on Emerging Markets Economies in Saudi Arabia, Cardoso met with Talal Al-Humond, Assistant Governor for Monetary Affairs at the Saudi Central Bank (SAMA), to discuss areas of mutual economic interest.

The statement read, “The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, has canvassed stronger economic ties with the Middle East and the Nigerian diaspora community in the region.”

The CBN Governor noted that Saudi Arabia’s investments in large-scale infrastructure projects, economic diversification, and tourism provide valuable insights that Nigeria can leverage to drive its own development agenda. He also restated the apex bank’s commitment to working closely with the Nigerian diaspora in the Middle East to improve remittance inflows and strengthen the financial sector.

Al-Humond, in response, assured Cardoso of the Saudi Central Bank’s willingness to collaborate with Nigeria on key economic objectives.

During a panel discussion moderated by IMF’s Director for the Middle East and Central Asia, Jihad Azour, Cardoso provided an update on Nigeria’s foreign exchange market reforms, highlighting significant progress in stabilizing the naira.

According to him, the wide gap of up to 60% between the official and parallel market rates has now narrowed to approximately 4–5%, driven by consistent policy measures and improved market confidence.

He noted that the introduction of an electronic forex matching system, along with a foreign exchange code of ethics signed by all Nigerian banks, has improved transparency in forex trading. As a result, Nigeria’s foreign reserves have surpassed $40 billion, marking the highest level in nearly three years.

Cardoso acknowledged Nigeria’s previous economic challenges, including capital flight, currency depreciation, high inflation, and a backlog of forex transactions, which eroded confidence in the market.

He stated that the CBN has prioritized restoring market confidence through a combination of tight monetary policy and structural reforms. Over the past year, the apex bank has raised interest rates by 850 basis points and phased out quasi-fiscal interventions that distorted the economy.

The Governor also pointed to the removal of fuel subsidies, a policy that had cost Nigeria an estimated 6% of its GDP annually. He noted that eliminating the subsidy and exchange rate inefficiencies has strengthened Nigeria’s fiscal outlook.

On financial sector stability, he reiterated the CBN’s mandate for banks to recapitalize, ensuring they can withstand economic shocks and enhance sector resilience.

Cardoso highlighted financial inclusion as a key focus for the CBN, stating that Nigeria’s inclusion rate currently stands at 74%.

The Conference on Emerging Markets Economies, organized by the Saudi Ministry of Finance and the IMF, was held in Al Ula, Saudi Arabia, from February 16 to 17, 2025, bringing together policymakers and economic experts from across emerging markets.