Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN), highlighted the bank’s reforms as pivotal to strengthening Africa’s financial architecture during the 5th African Union Extraordinary Session of the Specialised Technical Committee on Finance, Monetary Affairs, and Economic Integration in Abuja.
Cardoso detailed the CBN’s key reforms, which include transitioning to a unified exchange rate framework, eliminating fuel subsidies, and recapitalizing deposit money banks. These initiatives aim to enhance stability, resilience, and growth within Nigeria’s financial sector, aligning with broader African aspirations.
He emphasized that adopting a unified exchange rate framework has increased transparency and boosted investor confidence in Nigeria’s foreign exchange markets. Additionally, the recapitalization of banks has fortified the industry against economic shocks, promoting sustainable credit growth. The removal of fuel subsidies has also created fiscal space for strategic investments, while policies to enhance diaspora remittances have improved the external reserve position.
Cardoso noted that these measures demonstrate Nigeria’s commitment to building a robust financial system that aligns with regional goals. The extraordinary meeting, themed “Building a Stronger and Resilient Africa Financial Architecture,” underscores the dedication to achieving the ambitions of the “Abuja Treaty” and the African Union’s “Agenda 2063.”
Central to these efforts is the establishment of the African Monetary Institute (AMI), a key institution for Africa’s financial and economic integration. The operationalization of the African Financing Stability Mechanism (AFSM) is also essential for fostering financial resilience across the continent. The AMI’s creation marks a significant milestone toward a common currency, while the AFSM represents a proactive strategy to ensure financial stability amid global economic uncertainties.
