… Nigeria’s external reserves top $43bn
Africa’s monetary and foreign exchange reforms have helped stabilise economies across the continent but cannot, on their own, resolve long-term growth constraints, the Central Bank of Nigeria (CBN) said on Wednesday, urging policymakers to complement macroeconomic reforms with measures that improve productivity and investment.
Muhammad Sani Abdullahi, deputy governor for corporate services at the CBN, said African economies must move beyond stabilisation policies and focus on structural reforms capable of unlocking sustainable growth, as they confront global trade disruptions, technological changes, geopolitical tensions and climate pressures.
Speaking at the opening of the 7th Africa Emerging Markets Forum in Abuja, Abdullahi said the changing global economic environment required stronger institutions, disciplined policymaking and the willingness to make difficult choices.
The two-day event, co-hosted by the CBN, Emerging Markets Forum and the Centre for the Study of the Economies of Africa (CSEA), brought together policymakers, central bank officials, academics, business leaders and development partners to discuss strategies for building resilient emerging economies.
“Nigeria’s experience shows that recovery is possible when difficult reforms are backed by a consistent and disciplined policy. It also shows that no country can navigate today’s global pressure alone and that monetary and foreign exchange reforms, important as they are, cannot by themselves address Africa’s long-term productivity constraints,” Abdullahi said.
CBN has implemented sweeping economic reforms over the past two years, including the removal of multiple foreign exchange windows, tighter monetary policy, settlement of verified foreign exchange obligations and the introduction of an electronic foreign exchange trading platform aimed at improving transparency and price discovery.
According to Abdullahi, the reforms have narrowed the gap between official and parallel exchange rates while strengthening Nigeria’s external position. Gross external reserves rose to $52.52 billion as of July 17, providing about 11 months of import cover, while net external reserves recovered to more than $43 billion.
He said inflation had eased, real GDP growth had returned and non-oil exports increased by 13.7% year-on-year, adding that the reforms had helped reduce distortions that existed under the previous foreign exchange regime.
However, Abdullahi cautioned that macroeconomic stability alone would not guarantee prosperity for Africa, despite the continent’s youthful population, expanding digital economy and abundant natural resources.
“What matters now is execution of sound policy, disciplined institutions and the willingness to confront difficult trade-offs,” he said.
He urged African countries to draw lessons from one another while recognising that reforms must reflect individual economic and institutional realities.
Olayemi Cardoso, CBN Governor, in his opening message, said emerging economies must move beyond responding to global disruptions and instead seek to influence the direction of the changing global economic order.
Cardoso said geopolitical fragmentation, shifting supply chains, technological disruption and evolving financial systems were creating uncertainty but also opening new opportunities for emerging markets, particularly in Africa.
“The question before us is no longer whether change is coming. Change is already here. The real question is whether emerging markets will simply adapt to this new order or play an active role in shaping it,” Cardoso said.
He said Africa’s youthful population, expanding consumer markets, natural resources and entrepreneurial talent provided a strong foundation for economic transformation, but these advantages must be supported by sound policies, resilient institutions and deeper regional cooperation.
Cardoso said Nigeria’s reform programme at the CBN was built around transparency, policy credibility and good governance, adding that stronger institutions would remain critical to sustaining economic progress.
“The early signs of renewed confidence in Nigeria’s macroeconomic direction affirm that disciplined reform delivers lasting results,” he said.
He said the Emerging Markets Forum provided an opportunity for policymakers, researchers and private-sector leaders to develop practical solutions to shared challenges, including trade and investment, digital transformation, financial inclusion and institutional strengthening.
Later on Wednesday, proceedings at the forum will include a fireside chat featuring Ngozi Okonjo-Iweala, director-general of the World Trade Organisation, and Cardoso, focusing on how emerging economies can navigate a changing global trading system while pursuing inclusive growth.
Harinder Kohli, founding director and chief executive of the Emerging Markets Forum, said the Abuja meeting was the largest Africa-focused gathering organised by the forum and attracted participants from Nigeria and other parts of the world.
Kohli described Africa as the “ultimate frontier” of global economic development, saying the continent’s future would depend on its ability to address challenges around investment, innovation and productivity.
The Abuja gathering is the 39th meeting organised by the Emerging Markets Forum globally and will examine issues including monetary policy, regional integration, artificial intelligence, urbanisation and job creation.
Chukwuka Onyekwena, executive director of CSEA, said the forum was taking place at a time of major global transformation, with changes in trade patterns, technology and financial conditions reshaping economic prospects.
He said Africa must use evidence-based policymaking, stronger institutions and African-led solutions to turn global changes into opportunities for sustainable growth and employment.
Onyekwena said research should move beyond identifying problems to providing practical policy options for governments, central banks, development partners and the private sector.
