CBN Governor Cardoso Announces Plans to Diversify Nigeria’s Foreign Reserves

Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso

Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has unveiled plans by the apex bank to diversify the country’s foreign exchange reserves as part of broader reforms aimed at strengthening Nigeria’s financial system.

Cardoso made the announcement on Tuesday during the opening ceremony of the Afreximbank Annual Meetings (AAM) held in Abuja.

Although he didn’t disclose specific details, the CBN Governor emphasized that the diversification strategy will play a central role in ongoing monetary reforms designed to reposition Nigeria’s foreign exchange market for long-term economic stability.

Diversifying foreign reserves is a common strategy employed by central banks to reduce dependency on a single currency—typically the US dollar—by broadening their reserve portfolios to include other global currencies such as the euro, yen, and yuan, along with alternative assets like gold and Special Drawing Rights (SDRs).

Cardoso explained that the move is part of the CBN’s ongoing efforts to reform the forex market, enhance diaspora remittances, and stabilize the Naira.

“We’ve introduced two financial products—the Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account—designed specifically for Nigerians living abroad,” he said.

According to the Governor, these initiatives will offer secure and efficient platforms for Nigerians in the diaspora to manage and invest funds in the country’s financial markets.

He added that the plan is aimed at unlocking the economic potential of the diaspora by encouraging remittances and promoting investment in key sectors of the economy.

“It is crucial for initiatives like this to be embraced, so that Africa and its diaspora can continue to act in unity,” he stressed.

Cardoso described the new direction as a potential game changer, noting that it will enhance public understanding of how Nigeria is working to broaden both its revenue and foreign reserve bases.

However, he also cautioned that African nations must adopt proactive strategies to shield the continent from global economic disruptions. At the CBN, he said, his priority has been to rebuild confidence among stakeholders and international partners.

In his remarks, Mr. Denys Denya, Senior Vice President of Afreximbank, reflected on the bank’s journey since its inception 32 years ago. He noted that the institution initially faced strong resistance both within the continent and from international actors.

Denya recalled that Afreximbank was created as Africa’s strategic response to a series of economic crises, yet its formation was met with stiff opposition—a sign, he said, that some forces were determined to maintain Africa’s economic dependence and impede its progress.

Despite its difficult beginnings, Denya noted, Afreximbank has evolved into a systemically important institution, now central to supporting clients and advancing Africa’s development agenda.

“Afreximbank was born here in Abuja in 1993, with a mandate to finance, promote, and expand African trade at a time when global financial institutions were withdrawing from the continent,” he said.

Since then, Denya added, the bank has grown from modest origins—starting with just $750 million in capital—into a financial powerhouse with assets now exceeding $40 billion, symbolizing Africa’s growing economic strength.

Sahara Reporters

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