CBN Reforms Strengthen Africa’s Financial Resilience

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has highlighted the bank’s reforms as pivotal to building a stronger and more resilient African financial architecture.

Speaking on Saturday in Abuja at the 5th African Union Extraordinary Session of the Specialised Technical Committee on Finance, Monetary Affairs, and Economic Integration, Cardoso outlined transformative measures aimed at fostering stability and growth across the continent.

Key reforms included transitioning to a unified exchange rate framework, which he noted had enhanced transparency and bolstered investor confidence in Nigeria’s foreign exchange markets. “In the financial sector, the ongoing recapitalisation of banks has strengthened the industry’s capacity to withstand economic shocks and support sustainable credit growth,” Cardoso said.

He also pointed to the removal of fuel subsidies as a move that created fiscal space for strategic investments. Additionally, targeted policies to boost diaspora remittances have improved Nigeria’s external reserve position, he explained.

“These reforms underscore Nigeria’s commitment to building a robust financial system while aligning with regional aspirations,” Cardoso stated.

The meeting, themed “Building a Stronger and Resilient African Financial Architecture,” emphasised the importance of initiatives such as the establishment of the African Monetary Institute (AMI) and the operationalisation of the African Financing Stability Mechanism (AFSM).

“The AMI will mark a significant milestone in Africa’s journey toward a common currency, while the AFSM represents a proactive approach to safeguarding financial stability in an increasingly uncertain global economic landscape,” Cardoso remarked.

Minister of Finance, Wale Edun, represented by Aisha Umar, added that collective efforts were essential for Africa to overcome challenges such as dependency on international aid, poverty, and debt crises. “Only through collective endeavours can we navigate through the challenging times that face us,” he said.

The meeting also featured high-profile attendees, including representatives from the African Union, African Development Bank, and the United Nations Economic Commission for Africa, all reinforcing Africa’s commitment to economic resilience and integration. Adedipe Dauda Ewenla Named 2024 Real Estate Investor of the Year