Tinubu Aims for N1 Trillion GDP in 8 Years with Economic Reforms- CBN Governor

Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has unveiled a promising outlook for the economic policies proposed by President Bola Tinubu’s administration.

According to Cardoso, these policies have the potential to propel Nigeria’s Gross Domestic Product (GDP) to an impressive $1 trillion within the span of eight years. This proclamation, made on October 12, 2023, while Cardoso was in Marrakesh, Western Morocco, during the 2023 World Bank/IMF Annual Meetings, is undoubtedly a bold vision for the nation’s economic future.

In his address, Cardoso emphasized that the CBN is committed to aligning its focus with the broader objectives of fostering economic growth. This commitment encompasses identifying and implementing fiscal reforms that will pave the way for the monumental achievement of a trillion-dollar GDP within the stated timeframe. Furthermore, Cardoso pointed out that, upon reviewing macro-economic indicators of emerging markets, it became evident that Nigeria possesses the potential for remarkable economic growth if the proposed reforms are faithfully implemented.

The study conducted by the CBN’s leadership takes inspiration from a comparative analysis of economies that have achieved substantial growth. Notably, the focus was on BRICS countries, comprising Brazil, Russia, India, China, and South Africa, as well as the MINT countries—Mexico, Indonesia, Nigeria, and Turkey. These nations share similarities in terms of population size and developmental characteristics with Nigeria. By drawing insights from their respective trajectories, the CBN aims to chart a path that mirrors the successes of these global economic giants.

However, the CBN’s approach to facilitating Nigeria’s economic ascent entails a significant shift. Cardoso revealed that the apex bank will be discontinuing its development financing initiatives. Instead, it will assume a more prominent role in providing guidance and advisory services to various sectors of the economy. As Cardoso articulated, “In economies bigger than 1.0 trillion dollars, these indicators include moderate inflation, sizable foreign reserves, and the capacity to quickly rebound from a cyclical economic downturn.” He went on to explain that a reoriented CBN would be better equipped to serve Nigeria’s interests by directing its efforts towards monetary policy interventions and advisory roles that support the implementation of the administration’s fiscal proposals.

Cardoso made a strong case for delineating the boundaries between monetary policy and fiscal intervention, asserting that the CBN should step back from its direct involvement in development financing and refocus its energy on providing more limited advisory roles. Over the years, the CBN has ventured into various development financing initiatives, blurring the lines between monetary policy and fiscal intervention. In an effort to realign the CBN with its core mandate, Cardoso underscored the importance of the central bank functioning as a catalyst in the propagation of specialized institutions and financial products that bolster emerging sectors of the economy.

He also highlighted the need for the CBN to facilitate the creation of new regulatory frameworks that would unlock dormant capital within land and property holdings. In doing so, the CBN could significantly contribute to the nation’s economic growth and development by creating an environment conducive to investment and capital mobilization.

Furthermore, Cardoso enumerated additional roles for the CBN, including accelerating access to consumer credit and expanding financial inclusion for the masses. These initiatives are vital for enhancing the economic well-being of a broader segment of the population and fostering financial stability and growth. In essence, the CBN’s transformation into a more advisory-driven institution reflects a forward-looking strategy aimed at aligning with the economic vision and objectives of President Bola Tinubu’s administration.

As Nigeria embarks on this ambitious journey to attain a trillion-dollar GDP within eight years, the transformation of the CBN’s role and focus is expected to play a pivotal role in the nation’s economic trajectory. By realigning its functions and emphasizing advisory roles over direct intervention, the CBN aims to provide the guidance and support necessary for Nigeria’s economic sectors to thrive and flourish. This shift in approach is rooted in the belief that, with the right policies and execution, Nigeria can ascend to a new level of economic prosperity and global relevance.