The Central Bank of Nigeria (CBN) has said that its wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy are beginning to strengthen the nation’s economy.

The apex bank, which made this disclosure during the its Special Day at the ongoing 36th Enugu International Trade Fair, organised by the Enugu Chamber of Commerce, Industries, Mines and Agriculture (ECCIMA), disclosed that Nigeria recorded $6.83 billion balance of payments surplus at the end of 2024.

It said it signals economic resurgence and a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022 financial years, respectively.

CBN’s acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, who delivered an address at the event, said the bank had continued to address pockets of macroeconomic challenges confronting the Nigerian economy and ensuring that the banking system remains robust and resilient.

She added that the apex bank was also closely monitoring the ongoing recapitalisation of the banking sector, to ensure the injection of quality capital as envisaged in the framework.

Ali said: “The current management of the bank was committed to correcting identified challenges of the Nigerian economy to stimulate productivity, especially the Small and Medium Enterprises (SMEs). The SMEs are the engine of growth in any economy. Domestic industries should also be strengthened to shield the local economy from harmful external shocks.

“Achieving an impactful industrial development for global recognition is premised on a tripod. This includes robust financial systems fundamentals, foreign, exchange market stability and strong collaboration between the monetary and fiscal authorities. The bank’s efforts in these directions are already yielding the desired results.

“This has resulted in significant increase of inflow in foreign direct and portfolio investments and positive trade balance in recent times. Specifically, Nigeria recorded $6.83 billion balance of payments surplus at the end of 2024. which signals economic resurgence and a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022 financial years, respectively.

“This improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

“The bank has continued to address pockets of macroeconomic challenges confronting the Nigerian economy and ensuring that the banking system remains robust and resilient. In the same vein, the Bank is also closely monitoring the ongoing recapitalisation of the banking sector, to ensure the injection of quality capital as envisaged in the framework.”
Ali noted that the Nigerian payments system has continued to be reckoned with globally, adding that CBN has remained resolute in ensuring effective and efficient payments system infrastructure.

The President of ECCIMA, Sir Odega Jideonwo, commended the management of the CBN for its policy measures to rebuilding stronger business confidence and ensuring stability in the economy particularly in the financial/banking sector.

Jideonwo, however, advised the CBN to ensure that its key policies, which include raising interest rates (Monetary Policy Rates), implementing an electronic Foreign Exchange Matching System and recapitalising banks with increased minimum capital requirements, will not in any way become counterproductive.

The ECCIMA president, however, expressed worry over the consistent and recent increase in interest rate by CBN to 27.50 per cent in an aggressive push to manage the nation’s inflationary pressure and liquidity.

“The high Interest rate regime will likely have adverse effects on the accessibility of bank credit by businesses. There is no doubt that access to credit and cost of funds have relationships with increasing or decreasing levels of productivity, GDP and stabilising our economy. Be that as it may, we hope that these policies of the bank are in tandem with the renewed hope mantra of the Federal Government.

“However, it is instructive to state that we are still looking forward to seeing the clear positive impact of this agenda of the Federal Government on businesses and the Nigerian economy in general,” Jideonwo said.