CBN Urges Businesses to Innovate and Seek New Markets to Withstand Economic Shocks
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has called on businesses to prepare better for economic shocks by embracing new ideas, improving the way they are managed and looking for new markets for their goods and services.
The Bank said building a strong economy cannot be left to monetary authorities alone. It said businesses, financial institutions, policymakers and tax administrators all have important roles to play in creating an environment that supports lasting economic growth.
The Director of the Stakeholder Engagement and Institutional Relations Department of the CBN, Hakama Sidi Ali, made the call in Abuja at a special celebration held alongside the 21st Abuja International Trade Fair.
She said businesses must keep adjusting to changing economic conditions, while financial institutions should give more support to the productive sectors of the economy. According to her, a strong economy requires everyone to work together.
“Businesses must embrace innovation, improve governance and explore new markets,” she said.
Sidi Ali described resilience as a necessity in today’s economic environment. She said businesses and institutions must be able to absorb shocks, recover quickly and make use of new opportunities. She added that this depends on having a productive private sector, an effective tax system, a stable financial sector and policies the public can trust.
She said the CBN, under Governor Olayemi Cardoso, has been working with the fiscal authorities on reforms meant to improve the stability of the economy and win back the confidence of investors. According to her, one major step was the unification of the foreign exchange market, which the Bank says has reduced distortions and improved stability and investor confidence. She also pointed to the Payment System Vision 2028 and the completion of the banking sector recapitalisation as important parts of the reform programme.
On interest rates, the CBN recently reduced the Monetary Policy Rate (MPR), the main rate that guides borrowing costs in the economy, from 26.5 per cent to 23 per cent. It also adjusted the Standing Facility corridor to plus 50 and minus 300 basis points around the MPR. Sidi Ali said the lower rate is meant to support productive activity while the fight against inflation continues. She said the Bank remains focused on bringing inflation, now at 15.39 per cent, down towards single digits.
The rate cut matters to businesses because monetary policy affects how costly and how available credit is across the economy. Where banks pass on the lower rate effectively, businesses could find it easier to borrow, invest and produce.
Sidi Ali also disclosed that Nigeria’s gross external reserves have risen above $55 billion as of September 18, 2026, the highest level in 18 years. She credited the rise to better inflows of foreign exchange, helped by measures that encourage remittances, investment and the use of formal financial channels. Stronger reserves give the country more room to deal with pressure on the foreign exchange market and help build confidence in the financial system.
She said the improved reserves, the foreign exchange reforms and the new monetary policy measures together are creating a more stable setting for trade and investment. She added that trade can only grow in a fairly stable economy.
“When inflation is moderated, exchange rates are relatively stable and the financial system is sound, businesses can plan and invest with greater confidence,” she said.
The CBN also linked monetary stability to the success of fiscal and tax reforms, saying governments are in a better position to carry out their policies when monetary conditions are stable. It urged tax authorities to make sure tax policies and their administration support productive activity instead of holding it back unnecessarily.
The Bank’s position comes as the organised private sector continues to push for easier access to finance, especially for smaller firms.
The President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu (SAN), urged the CBN to strengthen measures that give micro, small and medium enterprises (MSMEs) access to affordable and lasting financing. He also called for wider financial inclusion, greater use of digital financial services and better access to formal credit for small businesses.
Obegolu said closer cooperation between the CBN, financial institutions and the organised private sector would help businesses turn available opportunities into lasting enterprises, create jobs and support economic growth. He also called for more transparency and efficiency in tax administration.
He said the Abuja International Trade Fair has grown beyond an exhibition into a place where businesses can meet investors, policymakers and potential customers, build partnerships and explore new markets. According to him, the strong turnout of exhibitors, investors and other stakeholders shows growing confidence in the fair as a platform for trade, investment and business networking.
The ACCI president praised the CBN for taking part in the annual event year after year. He said the Bank’s presence helps businesses understand monetary and financial policies, while allowing policymakers to hear directly from entrepreneurs. He urged business owners and exhibitors to make full use of the opportunity by seeking information, asking questions and exploring areas where they can work with the Bank.
Obegolu said Nigeria needs a business environment in which government policies encourage enterprise, finance supports production and innovation helps Nigerian businesses compete at home, across Africa and around the world. He said the private sector cannot be separated from the country’s development efforts, and that government institutions and businesses must keep talking to each other.
He added that businesses need reliable information on monetary policy, financial services and other measures that affect their operations. He said the Chamber remains committed to strengthening the relationship between the organised private sector and the financial system, with the goal of building an economy in which government institutions and businesses work together to improve productivity, investment and competitiveness.
Sidi Ali said these combined efforts would strengthen the Nigerian economy and create more opportunities for investment, jobs and wealth creation.
