Naira reclaiming regional dominance, ending FX scramble ~ Cardoso
By Elegbede Abiodun
Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has declared that the Naira is getting stronger as a dominant currency within the West African sub-region.
Cardoso said this while speaking on the impact of ongoing monetary reforms at the National Economic Council (NEC) Conference in Abuja on Monday. He noted that restored currency stability has effectively ended the desperate scramble for foreign exchange, providing businesses and travellers with the predictability needed for long-term planning and regional trade.
According to him, the Bank’s reforms have established economic stability, evidenced by a significant reduction in inflation and growing external reserves, which he stated stood at $49 billion as of February 5, 2026. He also highlighted the stability of the FX market, noting that the CBN is now accumulating foreign exchange from the market to enhance sustainability.
“By that, I mean that we now allow the market to generally find its own level; many times, the Central Bank itself goes in to buy foreign exchange. The premium between the official and parallel market rates has collapsed to under 2 percent,” Cardoso stated.
“When you travel now, you don’t have to look for foreign exchange; you can use your Naira card and pay for whatever you want. We now have a situation where the Naira is more competitive and people are not afraid to hold it. In those days, when you traveled through the West African sub-region and offered Naira, nobody wanted to touch it. That is a thing of the past now.”
He added, “There is predictability, and you can plan. You don’t have to run around looking for foreign exchange to build up personal reserves. And for those who are holding unnecessary foreign exchange reserves, I don’t need to tell them that they are losing money every day.”
Noting that macroeconomic stability remains the most effective enabler of investment and output across the agribusiness, manufacturing, and service value chains, Cardoso said the Bank’s reforms—anchored on disinflation, FX market normalisation, and financial-system resilience—are already strengthening real-sector confidence.
He explained that the CBN operates with a roadmap aimed at achieving price stability through a transition to an Inflation Targeting Framework. “Price stability is the bedrock of investment. The CBN is shifting from a restrictive approach to a proactive framework aimed at achieving a conducive, non-inflationary environment that allows businesses to plan long-term,” he said.
Another pillar of the roadmap involves strengthening external reserves to safeguard the value of the Naira. “The goal is to move from an interventionist model to market-driven liquidity, attracting Foreign Direct Investment (FDI) in addition to portfolio investors. As liquidity increases in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the CBN’s role shifts from a primary provider to a market stabiliser.”
Speaking on banking sector recapitalisation, Cardoso noted that the ongoing process is critical to supporting the financing of a $1 trillion economy. However, he warned that the banking sector remains awash with liquidity, as reflected in the oversubscription of OMO auctions, T-bills, and FGN bonds.
“Therefore, monetary stability requires fiscal discipline; fiscal sustainability requires monetary credibility. The CBN will sustain a disciplined interest rate path with clear guidance and transparent operations,” he said.
Also speaking at the event, Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, described the NEC as a vital platform for strengthening Nigeria’s federal system. He noted that the President’s reform choices have improved fiscal conditions across all tiers of government.
Bagudu highlighted that Nigeria’s reforms are gaining global recognition, citing a recent World Bank report that described Nigeria’s restructuring as a ‘world reference material.’
He emphasised that sustaining this momentum and achieving a $1 trillion economy would depend on continued cooperation between the federal, state, and local governments.
