CBN: Nigeria has reached an economic turning point

Nigeria has reached an economic “turning point” according to the Central Bank of Nigeria (CBN), with multiple key indicators showing significant improvements following comprehensive reforms. This assessment was shared with global investors during the CBN’s recent presentation at Nasdaq MarketSite in New York. Deputy Governor, Muhammad Sani Abdullahi, provided evidence of Nigeria’s economic transformation, highlighting […]

Nigeria has reached an economic “turning point” according to the Central Bank of Nigeria (CBN), with multiple key indicators showing significant improvements following comprehensive reforms.

This assessment was shared with global investors during the CBN’s recent presentation at Nasdaq MarketSite in New York.

Deputy Governor, Muhammad Sani Abdullahi, provided evidence of Nigeria’s economic transformation, highlighting several indicators that demonstrate tangible progress.

“We are confident that the economy is at a turning point,” he stated, backing this assertion with specific data points.

Among the most striking achievements is the dramatic improvement in public finances. Retained revenues have increased from 7.7 trillion to 12.4 trillion to 20.8 trillion naira, representing “quantum jumps” attributed to “the inefficiencies that are being removed from the system, because of the security improvements, because of the reforms that are happening across government.”

“The oil sector, which had been contracting for over three years, has now returned to positive growth following subsidy removal and sectoral reforms.”

“If you look at it from 2021, 22, 23, the oil subsidies were removed and the work started on that sector, we could see that the oil GDP then suddenly went positive,” explained the Deputy Governor.

“Tax revenue performance has also improved significantly, with Nigeria aiming to reach a 13% tax-to-GDP ratio, up from less than 9% previously. “Nigeria has always been lowest in terms of if you look at it across the region we were at less than 9% of tax to GDP. Now for the first time we are looking at 13%,” noted Abdullahi.

Foreign exchange market indicators provide further evidence of economic transformation. Market liquidity has increased from $120 million daily to $500-600 million daily, creating what the Deputy Governor described as “a very liquid market” that has “been deepening over the last 18 months.”

The narrowing of the premium between the Bureau de Change segment and the official market to less than 2% represents significant progress in market unification and transparency.

Global financial leaders at the event uniformly acknowledged these indicators as evidence of meaningful economic progress. Ahmad Zuaiter of Jadara Capital Partners noted that Nigeria is now viewed as “one of the few bright spots for investment in Africa” despite global economic volatility.

The panel discussion at the event confirmed these positive indicators, with Razia Khan of Standard Chartered highlighting Nigeria’s “unabashed embrace of reform to really drive Nigeria forward in a significant way.” She noted that these fundamentals are creating sustainable economic momentum.

Even Nigeria’s debt position was addressed realistically, with the Deputy Governor noting it is “manageable, with the country working to settle its debt.” This pragmatic assessment demonstrates the leadership’s comprehensive approach to economic management.

As Nigeria continues its economic transformation journey, these improving indicators suggest that the country has indeed reached an inflection point where reform efforts are translating into measurable economic outcomes, positioning the nation for sustained growth and increased global investment.