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CBN Sets $1bn Monthly Remittance Target Goal

Kehinde Fajobi

CBN Governor Olayemi Cardoso announced this goal during a symposium in Abuja titled “Promoting Stability in an Era of Economic Reforms: The Journey So Far.”

Reflecting on his first year in office, Cardoso outlined the bank’s achievements and the challenges it continues to address, including high inflation, low investor confidence, and foreign exchange instability.

Cardoso reported that the CBN has successfully stabilised Nigeria’s foreign reserves, which have recently surpassed $40 billion—the highest level in nearly three years.

“The past year was among the most challenging in the bank’s history,” he said, noting that the institution faced a “credibility deficit” upon his team’s appointment but has since restored confidence through a series of targeted reforms.

To curb inflation, the CBN raised the Monetary Policy Rate (MPR) by 850 basis points to 27.25% and increased the Cash Reserve Ratio (CRR) for commercial banks to 50%.

Cardoso described these measures as crucial steps to rein in inflation and create a stable economic environment.

Although inflation remains elevated, Cardoso said it is beginning to trend downward, which he called an encouraging sign of reform progress.

Part of the CBN’s new approach includes the 2024-2028 Corporate Strategy, driven by core values of Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT).

Cardoso highlighted that the bank aims to shift from quasi-fiscal interventions towards traditional monetary policies, focusing on simplified foreign exchange (FX) windows to reduce market distortions and enhance transparency.

In its efforts to stabilise the foreign exchange market, the CBN has also introduced new guidelines for Bureau de Change (BDC) operations, which aim to curtail FX market disruptions and minimise arbitrage opportunities.

As part of a “Digital-First Initiative,” the CBN is optimising operations through automation and data-driven policy tools, including the launch of the Integrated Data Collection and Sharing Portal (IDSP) and an Investor Relations Unit to promote transparency and investment.

Governor Babajide Sanwo-Olu of Lagos State commended Cardoso and his team for their commitment to economic stability, praising their focus on data-driven policy and collaboration between fiscal and monetary authorities.

He emphasised that cohesive efforts between these bodies are essential for Nigeria’s economic growth.

CBN Deputy Governor on Economic Policy, Muhammad Sani Abdullahi, added that the symposium also marked the unveiling of a compendium titled “Promoting Stability in an Era of Economic Reforms: The Journey So Far.”

This publication, he said, captures the resilience and commitment driving the CBN’s recent reforms.

Looking ahead, Cardoso expressed optimism for Nigeria’s economic future, calling for unified leadership and collective commitment to overcoming challenges.

“Our aim is to support Nigeria’s aspirations with consistent, transformative action,” he said.

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