..As reforms raise capital inflows by 200%
By Seun Ibiyemi
The Central Bank of Nigeria Governor, Olayemi Cardoso has said reforms in Nigeria’s foreign exchange (FX) market have significantly improved liquidity, restored investor confidence, and stabilised the Naira.
Cardoso made the remarks on Thursday in Lagos while delivering a distinguished Alumni Lecture at St. Gregory’s College as part of the institution’s 144th Founder’s Day celebration.
He spoke on the theme: “Strong Foundations: From the Classroom to the Capital Base.”
The CBN governor explained that the Apex Bank had dismantled the multiple exchange rate system, which previously created arbitrage opportunities benefiting only a few privileged participants.
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“Through deliberate policy actions, we eliminated the system of multiple exchange rates and significantly reduced the parallel market premium from around 50 per cent in 2022 to less than two per cent on average in 2025,” Cardoso said.
He added that the FX market now operates with greater liquidity and efficiency, enabling market participants to transact without extraordinary interventions from the CBN.
The apex bank has also cleared the backlog of unmet foreign exchange demand, which previously constrained businesses and investors.
According to Cardoso, the reforms have contributed to a surge in capital inflows, which increased by nearly 200 per cent between 2023 and 2025.
He also noted that Nigeria’s external reserves have recently exceeded $50 billion, reflecting improved balance-of-payments conditions and growing investor confidence in the economy.
“The stability currently being witnessed in the Naira is the result of deliberate efforts to rebuild trust in Nigeria’s financial markets,” he said.
Cardoso stressed that these reforms are part of broader macroeconomic measures aimed at restoring stability and strengthening Nigeria’s financial system.
The central bank has also returned to orthodox monetary policy and tightened measures to tackle inflation, which has declined from a peak of 34 per cent to about 15 per cent.
He emphasised that strong financial institutions and transparent markets are essential foundations for sustainable economic growth and said the reforms had positioned Nigeria’s economy to better withstand global shocks, including geopolitical tensions affecting energy prices and capital flows.
In his welcome address, Rev. Fr. Emmanuel Ayeni, Administrator of St. Gregory’s College, described the school’s history since its founding in 1882 as a “history of greatness” that has produced generations of leaders across various sectors.
He specially welcomed Cardoso, noting that the alumnus’s leadership is contributing to shaping Nigeria’s financial landscape.
A panel of financial experts at the event including wane”,”CEO Financial Derivatives Company Ltd”], [“people”,”Olufemi Awoyemi”,”Chairman Proshare”], and Tilewa Adebajo agreed that while recent monetary reforms have helped stabilise the economy, long-term growth will depend on coordinated fiscal reforms, stronger institutions, and lower inflation.
The panelists emphasised the need for policies that encourage productive investment and lending, stronger alignment between fiscal and monetary policies, and improved government revenue to support sustainable economic growth.
