CBN Courts Global Investors Through Wide-Ranging Economic and Financial Reforms

The Central Bank of Nigeria has intensified efforts to attract global investors by rolling out a series of far-reaching reforms aimed at restoring confidence in the country’s financial system and improving the overall investment climate. The reforms, which span the foreign exchange market, monetary policy operations and banking sector regulation, signal the apex bank’s determination to reposition Nigeria as an attractive destination for foreign capital.

In recent engagements with international investors, multilateral institutions and foreign business groups, the CBN highlighted steps taken to enhance transparency, improve policy consistency and reduce long-standing distortions in the economy. The central bank said these measures are designed to address investor concerns around currency stability, capital repatriation and regulatory uncertainty.

A key plank of the reforms is the ongoing overhaul of the foreign exchange market. The CBN has moved to unify multiple exchange rate windows, reduce administrative controls and allow market forces to play a greater role in price discovery. By streamlining the FX framework, the apex bank aims to eliminate arbitrage opportunities and improve liquidity, issues that previously discouraged foreign portfolio and direct investments.

The CBN has also prioritised clearing verified foreign exchange backlogs owed to airlines, manufacturers and other foreign investors. According to the bank, settling these obligations is critical to rebuilding trust and demonstrating Nigeria’s commitment to honouring legitimate investment inflows and outflows. Investors have long cited trapped funds as a major deterrent to doing business in the country.

In addition, the central bank has strengthened its communication strategy to provide clearer guidance on monetary policy direction. Analysts say improved transparency around interest rate decisions and liquidity management helps investors better assess risks and returns, making the market more predictable and attractive.

Banking sector reforms have equally featured prominently in the CBN’s investor engagement. The apex bank has intensified supervision, enforced stricter prudential standards and taken action against weak institutions to enhance system stability. By ensuring a resilient banking sector, the CBN said it is creating a stronger foundation to support investment flows and economic growth.

The regulator has also emphasised reforms in payment systems and financial infrastructure, noting that a modern, secure and efficient payments ecosystem is essential for attracting global investors. Enhanced electronic payment platforms, improved settlement systems and stronger cybersecurity frameworks are expected to boost confidence in Nigeria’s financial markets.

Speaking on the reform agenda, CBN officials stressed that attracting foreign investment is not just about policy announcements but sustained implementation. They noted that Nigeria offers compelling fundamentals, including a large consumer market, abundant natural resources and a growing technology ecosystem, but these advantages must be supported by credible and consistent policies.

Foreign investors and analysts have acknowledged the reform momentum, noting that recent policy shifts signal a more market-friendly approach. Some have pointed to increased activity in the fixed income and equities markets as early signs of returning confidence, although they caution that sustained progress will depend on macroeconomic stability and disciplined policy execution.

The CBN has also aligned its reform efforts with broader fiscal and structural measures being implemented by the Federal Government. Improved coordination between monetary and fiscal authorities, the bank said, is essential to addressing inflationary pressures, stabilising the currency and creating an environment conducive to long-term investment.

Beyond portfolio flows, the apex bank has underscored the importance of attracting foreign direct investment into productive sectors such as manufacturing, agriculture, energy and technology. According to the CBN, long-term capital inflows are critical for job creation, technology transfer and economic diversification.

To this end, the central bank has supported initiatives that expand access to credit for priority sectors while maintaining a tight monetary stance to rein in inflation. The balancing act, officials said, is necessary to stabilise the economy without stifling growth prospects that investors find attractive.

Industry stakeholders say the success of the CBN’s investor outreach will ultimately be measured by consistency and credibility. They argue that while reforms are welcomed, investors will be watching closely to see if policies are sustained across political and economic cycles.

The CBN, however, has expressed confidence that the reform direction is irreversible. Officials said lessons from past policy reversals have informed the current approach, which prioritises market discipline, transparency and institutional strength.

As global capital becomes more selective amid tightening financial conditions worldwide, Nigeria faces stiff competition from other emerging markets. The CBN believes that by addressing structural weaknesses and signalling a commitment to reform, the country can reclaim its position as one of Africa’s most attractive investment destinations.

With reforms gradually taking hold, the central bank maintains that Nigeria is on a path toward restoring investor confidence, stabilising the macroeconomic environment and unlocking the foreign capital needed to drive sustainable economic growth.