The Governor of the Central Bank of Nigeria, Mr Yemi Cardoso, has eased fears of any devaluation of the Naira anytime soon, saying the country’s ongoing monetary and foreign exchange reforms have restored confidence in the currency and strengthened the financial system.
Speaking while delivering a keynote address at the Annual Distinguished Alumni Lecture held in celebration of Founders’ Day of the St. Gregory’s College Old Boys Association in Lagos, the apex bank governor said, “These reforms have restored pride in our currency and strengthened confidence in our financial system.”
Mr Cardoso explained that the CBN remains focused on restoring price stability and bringing inflation down to single digits, noting that although the objective will take time to achieve, it remains central to the apex bank’s policy direction.
“Our goal remains to bring inflation down to single digits. This cannot happen overnight. External shocks will continue to occur, and global developments will always have some impact. But inflation is effectively a tax, and it disproportionately affects the most vulnerable members of society,” he said.
“That is why restoring price stability remains a central objective.”
He noted that the bank’s commitment to transparency and well-governed markets is evident in the reforms carried out in the foreign exchange market, including the elimination of the multiple exchange rate system that previously benefited only a few.
According to him, although some critics argue that the exchange rate appears higher today than it was before the reforms, the key difference lies in accessibility and transparency.
“Some critics argue that the exchange rate today appears higher than it was before the reforms. My response is simple: when the official rate was lower, how many people could actually access foreign exchange at that rate? The answer, in most cases, was very few,” he said.
“Today, the situation is fundamentally different. Foreign exchange is accessible through formal channels, and the system is far more transparent.”
He explained that many Nigerians travelling abroad can now use their naira cards directly instead of searching for foreign currency through informal channels, a development he said represents a major improvement compared to previous years when travellers struggled to access foreign exchange.
Mr Cardoso further revealed that the premium between the official and parallel markets has narrowed sharply from around 50 per cent in 2022 to less than 2 per cent on average in 2025, reflecting improved liquidity and efficiency in the FX market.