CBN targets $1trn economy

The Central Bank of Nigeria has disclosed that it is targeting a $1 trillion economy by 2030 while re-stating its commitment to ensure economic stability.

The governor of the apex bank, Olayemi Cardoso, gave this disclosure on Friday in Abuja while presenting the 2024 half-year report of activities of the bank to the Senate Committee on Banking, Insurance, and Other Financial Institutions.

To achieve this, Cardoso reiterated the bank’s commitment to implementing policies that would foster sustainable growth in the financial markets while ensuring overall economic stability.

He assured that with the implementation of the policies, 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, is the notable increase in external reserves, largely attributed to receipts from crude oil-related taxes and third-party payments, adding that the ongoing recapitalisation of commercial banks would further drive progress towards hitting a $1 trillion economy.

He added that the capital adequacy ratio remained strong at 12.2 per cent, aside from the industry liquidity ratio, which has also increased to 46.2 per cent, while the non-performing loan ratio fell to 3.8 per cent, 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 per cent, increasing cash reserve ratios, normalising 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.

In his opening remarks, the chairman of the committee, Senator Adetokunbo Abiru, lauded the CBN governor and his team for their efforts to stabilise the economy since taking office.