During the forum, before the Q&A session, Governor Olayemi Cardoso made a notable revelation. He informed the assembled crowd that Nigeria’s credit rating had been recently upgraded by Fitch to “B.” This upgrade was a recognition of the economic reforms implemented by the Central Bank of Nigeria (CBN). According to Cardoso, these reforms had “improved policy credibility and reduced near-term risks to macroeconomic stability.” The news was met with enthusiastic applause from the attendees, emphasizing the positive sentiment surrounding Nigeria’s economic progress. This moment also brought to mind the well – known adage that failure is an orphan, while success has many who claim a part in it, as the room filled with those who have a stake in Nigeria’s economic success.
The announcement of the credit rating upgrade underscores the remarkable transformation that can occur within an institution over the span of just one year. A year ago, when Cardoso was newly appointed, he faced a daunting task of navigating the CBN through a sea of challenges. The CBN was grappling with issues such as out-of-control ways and means advances, a backlog of foreign exchange (FX) obligations, and rampant arbitrage and speculation due to the significant gap between FX rates in the official and parallel markets. Additionally, the public, investors, and analysts were confused by the CBN’s persistent raising of the Monetary Policy Rate (MPR) at each meeting of the Monetary Policy Committee (MPC). However, through a series of strategic reforms, the CBN has managed to turn the tide, demonstrating how time and positive outcomes can effectively reshape public perception, as well as the opinions of investors and analysts.
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