The Federal Government on Friday declared that Nigeria is currently in a sound position to withstand global economic shocks stemming from the Middle East crisis or other issues.
The Minister of Finance/Coordinating Minister for the Economy, Wale Edun, and the Governor of the Central Bank of Nigeria, Yemi Cardoso, took turns reiterating this position during a press briefing at the ongoing Spring Meetings of the World Bank and the International Monetary Fund in Washington, DC, United States.
Speaking at the briefing, Edun said, “Nigeria came to this meeting with a clear message: our reforms are durable, self-sustaining. We are more resilient to global shocks, and we are focused on inclusive growth. Due to the reforms undertaken under the leadership of His Excellency, Mr President, Nigeria is well-positioned to withstand external shocks, such as the one we are witnessing at this time.
“Across our engagements this week, there has been strong recognition and commendation that Nigeria’s reform programme is strengthening our economic fundamentals and restoring confidence. This has placed us in a stronger and better position to withstand the ongoing situation described as the Israeli–US–Iran conflict.
“With the economy now operating a market-reflective foreign exchange regime and market-based pricing for petroleum products, adjustments are occurring relatively smoothly—without distorted controls, unsustainable subsidies, or a rapid depletion of reserves, based on the data available to the Central Bank of Nigeria.”
Edun noted that this improved resilience was “widely acknowledged throughout the week at our various meetings, including at the International Monetary Fund, the World Bank, and in our engagements with other development partners and bilateral counterparts.”
Corroborating the minister’s position, Cardoso stated that the CBN would sustain its course, stressing that “we are more determined to stay the course of our reforms,” having seen the gains so far achieved in this process.
He noted that the government and the apex bank had been able to contain the shocks, adding that through the reforms, the adverse effects of the Middle East crisis were better curtailed in Nigeria.
The CBN boss also pointed out that the bank completed the recapitalisation exercise of banks in Nigeria despite doubts in some quarters.
On the concerns that some banks were facing legal issues that had stalled the process of their recapitalisation, Cardoso stressed that the CBN was aware of the development, but noted that “Nigeria has moved on.”
Commenting on diaspora remittances, the CBN helmsman stated that “the target is $1bn per month by the end of the year. Where are we now? We’re at roughly $600m per month.”
With respect to diaspora engagement, he said, “You are correct to note that I have not addressed it directly, and that is deliberate for two reasons. First, we had a very significant engagement just a few weeks ago during the President’s official visit to the United Kingdom.
“At that time, we interacted extensively with the diaspora community, given that London remains a critical hub for Nigerians abroad. We have also held similar engagements in the United States on a number of occasions, and we felt those interactions were both necessary and impactful.”
More importantly, however, Cardoso explained that the Central Bank of Nigeria has already undertaken much of the foundational work required to ensure that diaspora-related financial flows could now be effectively channelled through the banking system.
“Our current focus is to encourage commercial banks to develop tailored products for the diaspora. Many of these banks already have a presence in key markets such as the UK and the US, and they understand the diaspora landscape far better at an operational level.
“As the central bank, our role is not to compete with these institutions, but to create an enabling environment. We have worked to remove key bottlenecks and ensure that Nigerians in the diaspora can transact seamlessly through formal channels. Initiatives such as facilitating access to the Bank Verification Number were driven by listening to stakeholders, identifying constraints, and addressing them in a practical way,” he stated.
