Abdulwahab Isa 
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed his commitment to engaging with the Nigerian diaspora community in the Middle East to enhance remittance flows and strengthen Nigeria’s financial sector.
Speaking during a meeting with Talal Al-Humond, Assistant Governor for Monetary Affairs at the Saudi Arabian Central Bank (SAMA), on the sidelines of the inaugural Conference on Emerging Markets Economies in Riyadh, Saudi Arabia, Cardoso emphasized the need for stronger economic ties with the region.
The conference was organized by the Saudi Ministry of Finance and the International Monetary Fund (IMF) Regional Office.
The CBN governor noted that under his leadership, the apex bank would continue to implement policies that reinforce macroeconomic stability, foster private sector growth, and create high-quality jobs for Nigerians.
He stated that there are valuable lessons to learn from Saudi Arabia in infrastructure development and tourism, noting that the country’s dedication to economic diversification through environmental projects, large-scale transformation, and tourism investment is crucial for national development.
In response, Mr. Talal Al-Humond assured Cardoso that the Saudi Central Bank would collaborate with the CBN to achieve mutually beneficial economic objectives.
During a panel discussion moderated by Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, Mr. Cardoso highlighted key reforms in Nigeria’s financial markets aimed at eliminating distortions in the foreign exchange system.
He recalled that the Nigerian forex market previously experienced a gap of up to 60% between the official and parallel market exchange rates. However, consistent policy measures, improved market confidence, and enhanced transparency in forex trading have significantly reduced the gap to approximately 4-5%.
To enhance market efficiency, he noted that the CBN introduced an electronic matching system to boost transparency and implemented a foreign exchange code of ethics, signed by all Nigerian banks, to ensure strict adherence to market rules. As a result, Nigeria’s foreign reserves have now exceeded $40 billion, the highest level in nearly three years.
Governor Cardoso acknowledged that Nigeria has faced serious economic challenges, including capital outflows, multiple exchange rate regimes, currency depreciation, high inflation, and a backlog of forex transactions, which undermined confidence in the naira.
Upon assuming office, he said his administration prioritized restoring market confidence by clearing the forex backlog and reinforcing economic stability.
He stated that the CBN has implemented a tight monetary policy stance to curb inflation and restore macroeconomic discipline. Over the past year, the Bank raised interest rates by 850 basis points and moved away from quasi-fiscal interventions that distorted the economy.
He further emphasized that Nigeria’s monetary policy remains firmly rooted in orthodox economic principles, a stance consistently communicated to market participants.
Another significant reform, Cardoso noted, was the removal of the fuel subsidy, which, along with exchange rate inefficiencies, had cost the country approximately 6% of its Gross Domestic Product (GDP) annually.
He acknowledged that while previous administrations lacked the political will to eliminate the subsidy, its removal has had a profound positive impact on Nigeria’s fiscal outlook.
He stressed that the decision was necessary for long-term economic stability, reinforcing his administration’s commitment to sustainable reforms that drive Nigeria’s economic growth.
