CBN Sets Ambitious $1bn Monthly Remittance Goal Amid Economic Reforms
By Patience Ikpeme
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has announced a bold target to increase the country’s foreign remittances to $1 billion per month as part of the bank’s ongoing economic reform agenda.
This disclosure was made during a keynote address at a symposium focused on economic reforms and the unveiling of a new compendium titled “Promoting Stability in an Era of Economic Reforms: The Journey So Far,” which marks the first anniversary of Cardoso’s administration.
Reflecting on the transformative strides taken over the past year, Governor Cardoso noted the CBN’s determination to stabilize Nigeria’s economy, combat inflation, and strengthen investor confidence, despite the challenges that prevailed upon his assumption of office in 2023.
He referred to the past year as a pivotal one for the CBN, noting that while it presented numerous challenges, it also catalyzed essential reforms that yielded measurable progress.
“With total foreign reserves now surpassing $40 billion, the highest in 33 months, we are witnessing the positive impact of our reforms. Although inflation remains elevated, it is trending downward,” Cardoso stated, stressing the CBN’s commitment to restoring market equilibrium and fostering economic growth.
The CBN Governor reflected on the severe economic conditions the CBN inherited, including a decline in GDP growth to 2.31% in Q1 2023 and inflation soaring to 24.1%. In response to these challenges, the CBN he said, implemented aggressive monetary policies, including an increase in the Monetary Policy Rate by 850 basis points to 27.25% and raising the Cash Reserve Ratio for commercial banks to 50%, measures aimed at curtailing inflation and enhancing monetary stability.
Pointing out the systemic issues that have impeded economic growth, Cardoso addressed the pressing fiscal deficit exacerbated by “Ways and Means Advances,” which ballooned to N22.7 trillion by mid-2023. He pointed to the adverse effects of multiple exchange rate windows, which have fostered arbitrage and discouraged foreign investment, ultimately leading to an estimated N6.2 trillion revenue loss in 2022 alone.
The Governor outlined the CBN’s renewed focus on orthodox monetary policies and streamlined foreign exchange operations as vital components of its new 2024-2028 Corporate Strategy. He noted that the strategy, “encapsulated by the values of Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT), signifies the Bank’s commitment to transparency and efficiency”.
In addition to these reforms, Cardoso announced the implementation of a “Digital-First Initiative” aimed at automating key processes and enhancing operational efficiencies within the Bank. He also established the Integrated Data Collection and Sharing Portal (IDSP) to foster a culture of transparency and data-centric decision-making, thereby boosting investor confidence.
The Lagos State Governor Babajide Sanwo-Olu praised the CBN’s management for their unwavering efforts towards stabilizing the economy. He called for cohesive policymaking among fiscal and monetary authorities to achieve unified economic objectives.
Deputy Governor for Economic Policy, Mr. Muhammad Sani Abdullahi, stated that the occasion was a vital recognition of the CBN’s journey and accomplishments over the past year. He highlighted the newly unveiled compendium as a representation of the Bank’s collaborative spirit and dedication to excellence in an evolving economic landscape.
