CBN Governor Pledges Continued Bold Reforms for Nigerian Economy
The Governor of the Central Bank of Nigeria (CBN), Olawale Cardoso, has affirmed the bank’s commitment to implementing bold reforms to ensure the economy benefits all Nigerians.
Speaking at the 2024 Annual Vanguard Economic Discourse themed “Reform in an Era of Global Economic Uncertainty: Whither Nigeria” in Lagos, Cardoso highlighted the positive impact of recent CBN measures.
“The theme, ‘Reforms in the Era of Global Economic Uncertainties: Whither Nigeria,’ encapsulates the significant challenges and difficult trade-offs policymakers face globally due to the severe headwinds and economic turbulence,” Cardoso stated.
He continued, “This era, aptly termed the VOCAL era—Volatility, Uncertainty, Complexity, Ambiguity, and Lack of Transparency—reflects the ongoing shocks affecting both global and regional spheres. This has resulted in elevated levels of global uncertainty.”
Cardoso referenced the World Uncertainty Index, which quantifies global economic unpredictability. “The latest report from this index indicates that recent global economic shocks have established a new norm of turbulence,” he said. “Political fragmentation and other factors have significantly heightened uncertainty, adversely affecting economic growth.”
Highlighting global economic forecasts, Cardoso noted, “The IMF recently projected a global growth rate of about 3.2%.
However, it acknowledged significant risks to achieving this growth, including tight financial conditions, disruptions to global supply chains, geopolitical tensions, and economic fragmentation.”
Cardoso also addressed the impact of global financial market tightening, driven by efforts to control inflation. “These tightening measures have led to investment outflows from developing economies like ours, as investors seek safer opportunities amid rising risks and uncertainties,” he explained.
He further elaborated on the broader impacts of geopolitical conflicts. “Energy and financial markets, as well as global trade flows, have been severely impacted by conflicts, especially the crises in the Middle East and the Russia-Ukraine conflict. These disruptions have dragged on economic growth and spurred significant inflationary pressures,” Cardoso concluded.
