The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has declared that the nation’s economy is on track to reach the $1 trillion mark by 2030.
This announcement was made on Friday during his presentation of the CBN’s first half-year review of 2024 activities before the Senate Committee on Banking, Insurance, and Other Financial Institutions.
Cardoso reaffirmed the CBN’s commitment to implementing policies that promote sustainable growth in the financial markets and assured his determination to ensure overall economic stability.
Since assuming office in October 2023, Cardoso emphasised that the CBN’s management had focused on stabilizing the economy, restoring confidence in financial markets, and laying the foundation for sustainable growth.
He highlighted that the Nigerian economy showed resilience in the first half of 2024, with a growth rate of 2.98% in the first quarter, compared to 2.31% during the same period last year.
“The Services sector has been the main economic driver, contributing 58.04% to the GDP with a growth rate of 4.32%. The Industrial sector also showed improvement with a growth rate of 2.19%,” Cardoso reported.
Addressing persistent inflationary pressures, Cardoso noted that headline inflation rose from 29.90% in January to 34.19% in June 2024.
However, he observed that the pace of monthly increases had moderated, indicating the effectiveness of the Bank’s anti-inflationary measures.
He also highlighted the significant narrowing of the spread between official and Bureau de Change (BDC) rates, which he attributed to successful price discovery and reduced arbitrage opportunities.
Cardoso pointed to the notable increase in external reserves, largely due to receipts from crude oil-related taxes and third-party payments, as a strong indicator of the growing economy.
“The ongoing recapitalization efforts in the banking sector are focused on enhancing financial stability and driving progress toward reaching a $1 trillion economy by 2030,” he said.
The Governor added that the capital adequacy ratio remains strong at 12.2%, with the industry liquidity ratio increasing to 46.2%.
Furthermore, the non-performing loan ratio fell to 3.8%, reflecting improved liquid assets and better risk asset quality.
Cardoso outlined key policy measures implemented by the CBN to address domestic macroeconomic challenges, including: raising the policy rate to 26.25%; increasing Cash Reserve Ratios; normalizing Open Market Operation and adopting Inflation Targeting as a new monetary policy framework.
Senator Adetokunbo Abiru, representing Lagos East and Chairman of the Committee, lauded the CBN Governor and his team for their efforts to stabilize the economy since taking office.
“The proactive measures and strategic policies introduced by the CBN have laid a strong foundation for achieving substantial economic growth and stability,” Abiru remarked.
