CBN Governor Cardoso Rejects Naira Devaluation Speculation
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has firmly dismissed concerns about an imminent devaluation of the naira, assuring Nigerians that no such plans exist. Speaking at the Annual Distinguished Alumni Lecture during the Founders' Day celebration of the St. Gregory's College Old Boys Association in Lagos, Cardoso emphasized that ongoing monetary and foreign exchange reforms have significantly strengthened confidence in Nigeria's currency and financial system.
Reforms Restore Confidence in Financial System
Cardoso highlighted that recent policy initiatives by the apex bank have restored credibility to the country's financial framework, boosting pride in the naira. He stated, "These reforms have restored pride in our currency and strengthened confidence in our financial system." The CBN governor reiterated the bank's commitment to achieving price stability and reducing inflation to single digits, though he acknowledged that this goal would require time due to domestic and global economic pressures.
He explained, "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. That is why restoring price stability remains a central objective."
Improved Transparency in Foreign Exchange Market
Cardoso pointed to key reforms in the foreign exchange market as evidence of the CBN's dedication to transparency and well-governed markets. These include the elimination of the multiple exchange rate regime, which previously limited access to cheaper foreign currency to a select few. While critics argue that the current exchange rate appears weaker than before the reforms, Cardoso countered that accessibility to foreign exchange has greatly improved.
He noted, "Some critics say the exchange rate now looks higher than before the reforms, but when the official rate was lower, only a small number of people could actually access foreign exchange. Today the situation is different. Foreign exchange is available through formal channels, and the market is far more transparent."
A major improvement cited by Cardoso is that Nigerians traveling abroad can now use their naira debit cards for international payments, reducing reliance on informal channels. Additionally, the gap between official and parallel market exchange rates has narrowed dramatically, dropping from approximately 50% in 2022 to less than 2% on average in 2025, reflecting enhanced liquidity and efficiency in the forex market.
Recent Naira Performance Against Major Currencies
In related developments, the naira has shown signs of recovery in the Nigerian Foreign Exchange Market (NFEM). Data from the CBN indicates that on Thursday, March 12, the naira appreciated to N1,371.51 per US dollar, marking a gain of N4.68 or 0.34% compared to the previous day's rate of N1,376.19 per dollar. The currency also strengthened against the British Pound Sterling, rising by N10.67 to N1,834.80 per pound from N1,845.47 per pound earlier in the week.
These improvements underscore the positive impact of the CBN's reforms, as highlighted by Cardoso, who remains focused on sustaining stability and fostering economic growth through continued policy adjustments.
