Nigeria’s Central Bank Sets Ambitious Target of $1 Trillion Economy by 2030

The Central Bank of Nigeria (CBN) has announced its intention to transform the country’s economy into a $1 trillion powerhouse by 2030, while reaffirming its commitment to ensuring economic stability. This ambitious goal was revealed by the bank’s governor, Olayemi Cardoso, during a presentation of the 2024 half-year report to the Senate Committee on Banking, Insurance, and Other Financial Institutions in Abuja.

To achieve this milestone, the CBN is committed to implementing policies that foster sustainable growth in the financial markets and ensure overall economic stability. Cardoso emphasized that the implementation of these policies will make the economy robust and capable of reaching the $1 trillion mark by 2030.

One of the key indicators of the growing economy is the significant increase in external reserves, largely attributed to receipts from crude oil-related taxes and third-party payments. The ongoing recapitalization of commercial banks is also expected to drive progress towards reaching the $1 trillion target.

The CBN governor highlighted several strong indicators of the economy’s growth, including a capital adequacy ratio of 12.2 per cent, an industry liquidity ratio of 46.2 per cent, and a non-performing loan ratio of 3.8 per cent. These figures reflect enhanced liquid assets and better risk asset quality.

To tackle domestic macroeconomic challenges, the CBN has implemented several key policy measures, including raising the policy rate to 26.25 per cent, increasing cash reserve ratios, normalizing open market operations, and adopting inflation targeting as a new monetary policy framework.

The bank has also introduced reforms in the foreign exchange market, resulting in a convergence of official and Bureau de Change rates, which has promoted transparency and reduced market distortions.

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