Nigeria’s Reforms Spark Growing Interest from Foreign Investors -Cardoso
Samuel Mobolaji
Central Bank of Nigeria (CBN) Governor Mr. Yemi Cardoso has affirmed that recent federal reforms are capturing significant interest from foreign investors.
Speaking at the Financial Times Africa Summit in London, Cardoso highlighted that Nigeria’s commitment to reform is drawing notable attention, referencing recent visits from Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon as indicators of rising international interest.
“There’s a substantial amount of interest now, particularly as Nigeria’s currency stabilisation has enhanced our economic competitiveness,” Cardoso noted.
He added that ongoing reforms place Nigeria in a stronger position to achieve sustained economic growth.
On the domestic front, Cardoso acknowledged persistent inflationary pressures, especially with food inflation, which he termed as “stickier.”
However, the CBN is collaborating closely with the government, preparing to leverage all available tools to control inflation and bolster investor confidence.
Cardoso reported that forex complaints have significantly reduced, following measures to improve market accessibility, contrasting sharply with previous times when foreign currency was only accessible to a limited few.
While President Bola Tinubu’s reforms have drawn international commendation, domestically, Nigerians continue to face economic challenges, including the highest cost-of-living crisis in years. Food inflation has exceeded 40% this year, and while headline inflation has seen a slight dip, it continues to weigh on households.
The removal of the electricity subsidy has driven tariffs up by over 200% for some, and petrol prices now exceed N1,000 per litre in several states.
This week, the naira depreciated by 4.3% against the dollar to N1,670.65 following a sharp drop in dollar liquidity, now at a one-month low of $81 million.
Despite these challenges, Nigeria’s foreign reserves have strengthened, reaching $39.4 billion in October, the highest in nearly two years.
Cardoso announced plans for the CBN to start regular disclosures of net reserves from early 2025 to enhance transparency.
Looking ahead, the World Bank projects Nigeria’s economic growth to reach 3.3% this year, with a modest increase to 3.6% by 2025, reflecting a gradual but steady pace aligned with the country’s reform trajectory.