Staying The Course: Cardoso’s Push To Sustain Nigeria’s Economic Reforms

Nigeria has come a long way from the economic difficulties that necessitated some of its most difficult policy decisions. But for the Central Bank of Nigeria (CBN), the bigger test may not be how far the country has travelled on the reform path, but whether it has the resolve to keep moving when the pressure to turn back mounts.

For investors who have watched the country’s economic adjustments over the years, the question is increasingly about consistency: whether the government can sustain its policies, consolidate the gains from recent reforms and provide the stability required for long-term capital to flow into the economy.

It is a concern that has featured prominently in Nigeria’s engagements with the international investment community, and one which the CBN Governor, Olayemi Cardoso, says the country has no intention of leaving unanswered.

Speaking with journalists on the sidelines of the 2026 Annual Meetings of the International Monetary Fund (IMF) and World Bank in Bangkok, Thailand in October, Cardoso assured that Nigeria would not abandon its reform programme, insisting that the country had come too far to reverse course.

For Cardoso, the message to investors is clear and straightforward: Nigeria must stay the course. According to him, abandoning reforms under pressure could undermine the hard work already undertaken and erode the confidence that the country is gradually rebuilding.

“The question has come up repeatedly during our engagements. Investors want to know whether we will remain committed to our policies and reforms. That is where the answer lies. In difficult circumstances, governments can come under pressure to abandon their policies. When that happens, all the hard work already undertaken can be undermined.

“But we are not about to do that. We have come a long way and demonstrated that the reforms can work. Stability is returning to our economy, and we must build on that progress. The last thing we intend to do is undermine the difficult reforms we have implemented. We will stay the course.”

The CBN governor’s assurance comes against the backdrop of Nigeria’s efforts to restore macroeconomic stability and rebuild investor confidence following a period of significant economic difficulties.

He noted that the country’s economic journey had attracted considerable attention among policymakers from other countries, many of whom were familiar with the measures taken to move Nigeria from crisis towards stability.

“I have participated in several forums with central bank governors from around the world. You would be surprised by how much they know about Nigeria’s economic journey, the actions we have taken, the currency and the measures that have moved the country from crisis towards stability,” he said.

Cardoso identified three major lessons from the annual meetings, including the resilience of the global economy despite geopolitical fragmentation and other headwinds, the importance of private-sector investment and the growing need for international collaboration.

He said governments must create an enabling environment for businesses to invest, expand and create jobs, adding that appropriate policies were necessary to support private-sector investment and economic activity.

He also stressed that cooperation across national boundaries, institutions, governments and the private sector had become increasingly important in addressing the challenges confronting the global economy.

For Nigeria, he said, the international recognition of its monetary policy reset was particularly significant, with the latest inflation figures providing further validation of the position adopted by the Monetary Policy Committee (MPC).

Cardoso also defended the structure and decision-making process of the MPC, following a high-level session organised by the IMF and moderated by its First Deputy Managing Director. According to him, the effectiveness of a monetary policy committee depended more on independence of mind and ability to challenge prevailing positions than whether its members were internal or external.

He explained that the CBN deliberately sought individuals with diverse skills, experience and independent perspectives to prevent groupthink, which could lead to poor monetary policy decisions.

To strengthen the participation of external members, he said the apex bank had assigned internal resource persons to provide them with information and support comparable to that available to internal members.

The bank also organises regular strategy sessions with MPC members, while some are undertaking study tours to other jurisdictions to understand how monetary policy committees operate under different economic conditions. He noted that these measures were particularly important because the economic circumstances Nigeria faced when the monetary policy reset became necessary demanded a strong and effective committee.

Beyond monetary policy, Cardoso said improved stability in the foreign exchange market was creating opportunities for development finance institutions to mobilise long-term capital in naira and channel more resources into productive activities.

He explained that the risks previously associated with exchange-rate volatility and sharp currency depreciation had receded considerably, improving prospects for raising long-term local-currency funding.

“The prospects for mobilising long-term naira-denominated capital have increased significantly as a result of the stability we have achieved in the markets. I can assure you that this progress should continue to strengthen,” he said.

He noted that while the CBN’s responsibility was to maintain monetary and price stability, development finance institutions had specific mandates to mobilise and deploy resources for economic development.

He identified the Africa Finance Corporation, Bank of Industry and Development Bank of Nigeria as institutions that could play greater roles in financing productive activities as stability improves.

On the growing importance of artificial intelligence (AI), Cardoso warned that developing economies could miss an opportunity to narrow the development gap with advanced economies if they failed to develop clear strategies for adopting the technology.

He described AI as a defining moment for developing countries, saying its adoption could determine whether they converge with advanced economies or fall further behind. However, he cautioned that the opportunities would not automatically translate into economic growth without deliberate planning, institutional preparedness and appropriate safeguards.

He disclosed that the CBN had begun preparing its leadership for the implications of AI by bringing its Board together with specialists for extensive discussions on the opportunities and risks associated with the technology.

Cardoso said the apex bank believed the process should be driven from the top, with the Board and management understanding the technology before its adoption across the institution.

While AI could improve productivity in areas such as pharmaceutical production and the operations of small and medium-sized enterprises, Cardoso warned that cybersecurity vulnerabilities and other risks could destabilise economies, complicate monetary policy and create challenges for financial institutions.

He also called for globally aligned standards to ensure that technological developments across the world remained compatible.

In balancing the expectations of the investment community with the needs of ordinary citizens, Cardoso identified transparency as a critical factor in building and sustaining confidence.

He said the CBN had made considerable progress in ensuring transparency in its engagements and policy decisions, noting that openness was important to investors regardless of the country in which they operate.