The Nigerian economy, which faced severe instability under previous administrations, has been stabilized through coordinated efforts by the federal government and the Central Bank of Nigeria (CBN), according to officials and experts. Former CBN Governor Sanusi Lamido Sanusi, now the Emir of Kano, acknowledged the progress made under current CBN Governor Olayemi Cardoso, stating that the bank has taken significant steps to address past economic mismanagement. "We are coming from a background of a very high level of instability as a result of loose money and an uncontrolled money supply, and the Central Bank has taken the last one year to mop up all that money," Sanusi said, highlighting the reduction of inflationary pressures and the stabilization of the exchange rate.",
Minister of Finance and Coordinating Minister of the Economy, Professor Taiwo Oyedele, credited the CBN for restoring confidence in the economy, citing a $5 billion balance of payments surplus in 2025 and foreign reserves reaching $55 billion. The CBN also cleared a $7 billion forex backlog, which bolstered market confidence and reinforced Nigeria’s commitment to honoring financial obligations. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, noted that these measures reduced pressure on the CBN, allowing it to build reserves and support the naira’s stability.",
The CBN’s efforts have focused on macroeconomic stability, with a proactive monetary policy stance and institutional reforms to improve regulatory effectiveness and transparent decision-making. The bank has also strengthened its credibility through responsible governance, creating an environment conducive to capital inflows and economic growth. Recently, the federal Ministry of Finance and the CBN signed a fiscal-monetary pact to enhance policy coordination, data sharing, and consultations aimed at lowering inflation sustainably and fostering investment.",
Despite these achievements, experts warn that Nigeria’s economic growth remains non-employment elastic, driven primarily by capital-intensive sectors such as oil, telecommunications, and finance. This pattern, which has persisted for years, contrasts with the real sector—comprising manufacturing and agriculture—that traditionally drives employment and aggregate demand. "The real sector has the capacity to generate high employment and is connected to the standard of living of the people," said Dr. Yusuf, emphasizing the need for policies that incentivize the real economy for inclusive growth.",
The Multilateral Investment Guarantee Agency (MIGA) has underscored the importance of stable investment environments in attracting sustainable private investment in emerging economies. While Nigeria has made strides in stabilizing the economy, challenges such as high inflation and structural imbalances persist. "Economic growth should have a positive correlation with employment, which boosts aggregate demand and drives business expansions," noted Nwobu, a chartered stockbroker and business journalist, highlighting the urgency of addressing the current growth model.",
As Nigeria moves forward, the focus must shift from short-term stabilization to long-term structural reforms. The government and CBN must prioritize policies that support the real sector, create jobs, and ensure that economic growth translates into improved living standards for all citizens. "The foundation for a resilient economy lies in addressing these anomalies and building a system that prioritizes inclusive development," experts concluded.