CBN targets $1trn economy by 2030

The Central Bank of Nigeria (CBN) is targeting a $1 trillion economy by 2030, its governor, Dr. Olayemi Cardoso, has said.

He also reaffirmed the CBN and the government’s commitment to ensuring economic stability.

Cardoso spoke on Friday in Abuja while presenting the 2024 half-year report of the bank’s activities to the Senate Committee on Banking, Insurance, and Other Financial Institutions.

Towards its realization, Cardoso restated the bank’s commitment to implementing policies that would foster sustainable growth in the financial markets while ensuring overall economic stability.

He said the implementation of the policies and the planned stability will make the economy robust and hit $1 trillion by 2030.

Part of the strong indicators of the growing economy, according to Cardoso, the notable increase in external reserves, largely attributed to receipts from crude oil-related taxes and third-party payments.

The ongoing recapitalization of commercial banks would further drive progress towards hitting a $1 trillion economy, Cardoso stated.

He added that the capital adequacy ratio remained strong at 12.2 percent, aside from the industry liquidity ratio, which has also increased to 46.2 percent, while the non-performing loan ratio fell to 3.8 percent, reflecting enhanced liquid assets and better risk asset quality.

He further outlined key policy measures the Bank had implemented to tackle domestic macroeconomic challenges, including raising the policy rate to 26.25 percent, increasing cash reserve ratios, normalizing open market operations, and adopting inflation targeting as a new monetary policy framework.

He also highlighted the reforms in the foreign exchange market, which resulted in a convergence of official and Bureau de Change rates, promoting transparency and reducing market distortions.

Earlier in his opening remarks, the Senate Committee’s Chairman, Sen. Adetokunbo Abiru, a banker, lauded the CBN governor and his team for their efforts in stabilizing the economy, which was in a parlous state before he took over.