Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has proclaimed that the economic status of the nation is poised to attain a value of $1 trillion by the year 2030.
This assertion was articulated by Cardoso during his discourse on the initial semiannual appraisal of the Bank’s undertakings in 2024 before the Senate Committee on Banking, Insurance, and Other Financial Institutions.
Asserting the unwavering dedication of the apex bank to executing strategies conducive to sustainable advancement in the financial spheres, the Governor of the CBN affirmed his resolute commitment to fostering comprehensive economic equilibrium.
Olayemi Cardoso communicated to the legislators that subsequent to assuming responsibilities in October 2023, the management of the Bank had been primarily engrossed in stabilizing the economic landscape, reinstating faith in financial markets, and laying a groundwork for enduring progress.
As per Cardoso, the robustness exhibited by the Nigerian economy in the initial phase of 2024 culminated in a 2.98% upsurge in the growth rate during the first quarter, as opposed to the 2.31% recorded in the analogous period of the previous year.
He accentuated that the Services sector emerged as the principal propeller of the economy, contributing 58.04% to the GDP with a growth rate of 4.32%. Furthermore, he acknowledged the advancements in the Industrial sector, which registered a growth rate of 2.19%.
Regarding the prevailing inflationary strains, characterized by an escalation in headline inflation from 29.90% in January to 34.19% in June 2024, Cardoso underscored that the pace of monthly increments had moderated, indicating the efficacy of the Bank’s measures against inflation.
He also drew attention to the substantial contraction in the differential between official and BDC rates, denoting a triumphant process of price determination and diminished opportunities for arbitrage.
As indicated by Cardoso, a noteworthy augmentation in external reserves, predominantly attributed to revenues from levies related to crude oil and external payments, stands as a robust testament to the expanding economy.
He appended that the capital adequacy ratio remained robust at 12.2%, the liquidity ratio within the industry surged to 46.2%, and the ratio of non-performing loans dwindled to 3.8%, portraying an amelioration in liquid assets and an enhancement in the quality of risk assets.
Furthermore, he delineated pivotal policy initiatives that the Bank had enacted to address domestic macroeconomic impediments, inclusive of elevating the policy rate to 26.25%, augmenting Cash Reserve Ratios, reinstating Open Market Operations to normalcy, and embracing Inflation Targeting as a fresh monetary policy framework.
Senator Adetokunbo Abiru, the representative of Lagos East and the Chairman of the Committee, commended the Governor of the CBN and his team for their endeavors in stabilizing the economy subsequent to assuming their roles.
