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Nigeria’s Foreign Exchange Market Finds New Stability: Cardoso’s Reforms

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CBN

Nigeria’s Foreign Exchange Market Finds New Stability: Cardoso’s Reforms

Nigeria’s foreign exchange market finds new stability: Cardoso’s reforms. Since assuming office, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has made significant strides in stabilising the foreign exchange market, rebuilding foreign reserves, and taming inflation— while restoring confidence in Nigeria’s monetary policy.

These developments mark a clear departure from the chaotic exchange rate environment that previously defined Nigeria’s financial sector.

‎‎Before Cardoso’s reforms, Nigeria operated a fragmented and opaque foreign exchange regime with multiple FX windows, ranging from the official I&E window to various interventions and retail channels.

‎This system allowed for wide discrepancies in pricing, often creating arbitrage opportunities for insiders while excluding legitimate businesses and ordinary Nigerians from fair access to dollars. Also,the gap between the official and parallel market rates frequently exceeded 60%, fueling black market speculation and discouraging foreign investment.

‎One central achievement of Cardoso’s leadership of the Central Bank has been the unification of the foreign exchange windows and the implementation of a transparent “willing buyer, willing seller” digital platform. This reform, which replaced the multiple FX windows, has allowed for efficient price discovery and market-led exchange rate determination.

‎As a result, the parallel market premium, which used to exceed 60%, has narrowed to as little as ₦1. The official exchange rate has stabilised at around ₦1,531/$1, nearly matching the rate in the parallel market. This significant compression has essentially eliminated arbitrage opportunities and is gradually rendering black-market currency trading obsolete.

‎Cardoso himself acknowledged the systemic instability he inherited and praised the CBN’s new trajectory, saying, “We inherited a crisis of confidence but chose a different path. We’re not turning back.” His remarks reflect a broader strategy aimed at removing opacity from the financial system, restoring trust, and encouraging formal sector engagement.

‎The FX market now operates with more transparency, and banks no longer redirect customers to street-level currency dealers—one of the most visible indicators of the system’s past dysfunction.

‎Equally notable is the progress in rebuilding Nigeria’s foreign reserves. With improved oil receipts, increased investor confidence, and a wave of foreign portfolio inflows, the country’s reserves have rebounded from below $35 billion to over $40 billion by mid-July 2025. In June alone, Nigeria saw foreign portfolio inflows exceed $2.7 billion, a 315% increase compared to April.

‎These flows have contributed to a healthier balance of payments position, provided roughly 9 to 10 months of import cover, and significantly reduced pressure on the Naira. According to Cardoso, these trends reflect Nigeria’s “shift from vulnerability toward strength,” signalling to investors that the country is regaining its financial footing.

‎Meanwhile, the inflation picture, although still challenging, shows signs of consistent improvement. Headline inflation has fallen from a high of 34–35% in late 2024 to 22.22% as of June 2025. This progress is the result of tighter monetary policy anchored by a steady Monetary Policy Rate of 27.5% and better FX market liquidity.

‎While food and core inflation remain elevated, Cardoso’s CBN has reiterated its commitment to price stability and medium-term inflation targeting. “Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” he stated recently.

‎Comparatively, the macroeconomic landscape has shifted significantly in less than a year. The exchange rate gap has virtually disappeared, reserves are growing, inflation is moderating, and investor confidence is returning.

‎Cardoso’s reforms mirror the kind of bold policy stance seen during President Bola Tinubu’s removal of fuel subsidy, a decision that collapsed the black market for petrol overnight. Similarly, as market transparency and monetary discipline take root, the demand for informal FX services is drying up naturally.

CBN

CBN


‎There is however reason for cautious optimism. Cardoso has shown that consistent, data-driven, and transparent policy can reset Nigeria’s monetary framework. FX arbitrage is fading, banks are regaining credibility, and the country’s reserves now provide a buffer against future shocks.

‎If sustained, these reforms could anchor long-term macroeconomic stability and real-sector growth. The groundwork has been laid; the challenge now is continuity and political will.

‎In summary, Cardoso is winning the early rounds of Nigeria’s economic recalibration. He is not merely managing a crisis, he is engineering a recovery.

And as the gap between official policy and economic outcomes narrows, Nigerians may finally begin to feel the relief that only true macroeconomic stability can offer.

Oyalowo, a development economist, can be reached on X (formerly Twitter) @AyoOyalowo

Economy

Lagos Assembly Strongly Seeks Suspension Of Makoko Demolition

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Lagos Assembly

Lagos Assembly Strongly Seeks Suspension Of Makoko Demolition

Lagos assembly strongly seeks suspension of Makoko demolition. The Lagos state house of assembly has called for the suspension of demolition activities in Makoko, Oko-Agbon and Shogunro waterfront communities following protests by displaced residents and growing public concern over the exercise.

The call was announced on Tuesday by Noheem Adams, chairman of an ad hoc committee set up by Mudashiru Obasa, speaker of the house, during a stakeholders’ meeting held at the Lateef Jakande auditorium.

Adams called on all state ministries to cease demolition work and promised compensation to the affected residents.
“On behalf of the speaker and all 40 members of the house, we are directing that all demolitions in Makoko, Oko-Agbon, and Shogunro communities should stop from today until further notice,” New Telegraph quoted Adams as saying.

He called for transparency by demanding the full list of taskforce members and the criteria used for engagement, insisting that residents must be actively involved in the process.

“That the taskforce that was constituted, we want to see the list of the taskforce because we want the residents to be duly involved and to be carried along. So we want to have the schedule of those task forces and the criteria for those that we are inviting,” Adams added.

Lagos Assembly

Lagos Assembly

“To the residents of Makoko, Oko-Agbon and Shogunro communities, as your representatives, we are giving you all assurances that they will stop demolitions henceforth and there will be compensations for all those whose properties have been demolished.”

Stephen Ogundipe, member of the ad-hoc, said there is need for clear communication, adding that residents targeted for relocation or redevelopment must be informed of the government’s plans in advance.

Babatunde Olajide, special adviser to governor of Lagos on E-GIS and urban renewal, confirmed that $2 million had been earmarked since 2021 to transform Makoko into a modern, internationally compliant water city.

He said enumeration of affected properties is underway and reiterated the administration’s commitment to handling the situation with a human face, prioritizing resident safety and fair compensation.

Yusuf Sagra, baale of Makoko, described the assembly’s decision as a “word of peace,” while Orioye Ogungbure, another leader of the community, praised the “democratic responsiveness” of the government.

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Crime

EFCC Arrests Kannywood Star, Samha Inuwa for Alleged Naira Mutilation In Viral Video

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EFCC Probes Man

EFCC Arrests Kannywood Star, Samha Inuwa for Alleged Naira Mutilation In Viral Video

EFCC arrests Kannywood Star, Samha Inuwa for alleged naira mutilation in viral video. The Kano Zonal Directorate of the Economic and Financial Crimes Commission, EFCC,   on Tuesday, February 3, 2026  arrested a Kannywood Star, Samha Inuwa over alleged Naira mutilation.

Inuwa was arrested following a viral video circulated on social media platforms where she was seen conspicuously cleaning mucus from her nose using Naira notes.

EFCC Probes Man

EFCC

Following the release of the viral video, the Commission swung into action by tracing and subsequently arrested her to answer questions.
She is currently being held at the Commission’s detention facility while investigation is ongoing.

The suspect will be charged to court upon conclusion of investigations.

Dele Oyewale
Head,  Media & Publicity
February 3, 2026

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Economy

Access Bank Gets New Board Chair Ifeyinwa Osime

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National Bank Of Kenya

Access Bank Gets New Board Chair Ifeyinwa Osime

Access Bank gets new board chair Ifeyinwa Osime. Access Bank Plc has appointed Ifeyinwa Osime as chair of the board of directors, following the retirement of Paul Usoro, on January 29.

Access Bank Plc has appointed Ifeyinwa Osime as chair of the board of directors, following the retirement of Paul Usoro, on January 29, according to a statement to the Nigerian Exchange Ltd. on Monday.

Ms Osime, a legal practitioner, joined Access Bank’s board in November 2019 as an independent non-executive director and had chaired its Human Resources and Sustainability Committee and the Governance, Nomination, and Remuneration Committee. This role made her contribute significantly to the bank’s corporate governance, leadership development, and sustainability initiatives.

Additionally, Ms Osime is a director at Ebudo Trust Ltd. and a partner at McPherson Legal Practitioners, where she advises on corporate and commercial matters and contributes to strategic leadership.

She is also a member of the Nigerian Bar Association, the Women Corporate Directors, Nigeria Chapter, and the Chartered Institute of Directors, Nigeria, where she serves on the Executive Committee of the Women Sectoral Group.

National Bank Of Kenya

Access Bank Gets New Board Chair Ifeyinwa Osime

Beyond her professional responsibilities, Ms Osime is committed to mentoring youths and is actively involved in the Autism and Developmental Delays Support Community, reflecting her dedication to inclusion and social impact.
Speaking on her appointment, the group chairman, Aigboje Aig-lmoukhuede, said, “Mrs Osime is a principled and experienced leader with a deep understanding of the Bank’s strategy and values.

“She has demonstrated strong commitment to the bank’s vision and mission, and I am confident that, under her leadership, the bank will continue to advance its strategic objectives of delivering sustainable value to shareholders and other stakeholders in the pursuit of its vision to become the world’s most respected African bank.”

Mr Aig-lmoukhuede also congratulated Mr Usoro on the completion of his tenure and on his exemplary leadership, dedication, and significant contributions to the group, saying he remains a valued member of the Access family.

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