Beyond the Pain: Preserving Reform Gains, Ensuring Policy Consistency

Beyond the Pain: Preserving Reform Gains, Ensuring Policy Consistency

At the 7th Africa Emerging Markets Forum, the economic conversation in Nigeria has shifted beyond the need for difficult reforms, to what happens after they have been implemented. Central Bank of Nigeria Governor, Mr. Olayemi Cardoso, emphasized the importance of preserving gains long enough for them to become the foundation for investment, production and jobs.

He urged for restraint, consistency and continuity, stating that economic credibility is not a one-time achievement but must be continuously earned through right decisions and consistent action.

The reforms undertaken by Nigeria have produced results such as moderated inflation, stronger external buffers and a safer, better-capitalised financial system. However, these gains remain vulnerable to policy reversals, which is a key concern for the central bank. Cardoso stressed the importance of protecting the reform architecture to avoid squandering the progress made.

He highlighted the need for stability to survive enough economic cycles for businesses to plan around it, for monetary discipline to become credible enough for inflation expectations to adjust, and for investors and banks to see consistency before committing capital.

Cardoso also spoke about the broader global shifts confronting African economies, including fragmentation in global trade, selective international capital, and rapid advances in artificial intelligence. He argued that Africa must mobilise its own resources to channel them into productive investment. He stressed that policy consistency is a key ingredient for reform success, as evidenced by the moderation of inflation, strengthening of external buffers, and improvement in the financial system.