•Highlights FX reforms, efficient payments as drivers of global trade
Nume Ekeghe
Central Bank of Nigeria (CBN) has said macroeconomic stability is critical to strengthening the country’s trade competitiveness, stating that businesses require a predictable economic environment to plan, invest, and compete effectively in regional and international markets.
CBN also identified foreign exchange market reforms, efficient cross-border payment systems, and a resilient banking sector as important drivers of Nigeria’s participation in global trade. Director, Stakeholder Engagement and Institutional Relations Department of CBN, Mrs. Hakama Sidi Ali, stated this at the CBN Special Day during the 40th Lagos International Trade Fair organised by Lagos Chamber of Commerce and Industry (LCCI) on Thursday.
Sidi Ali said, “Businesses need a stable macroeconomic environment in which they can plan, price their products, access financial services and make investment decisions with greater confidence.”
She explained that the significance of economic stability extended beyond economic statistics, adding that “it means being better able to estimate production costs, negotiate contracts, manage cash flows and make longer-term investment decisions”.
Sidi Ali said CBN had, over the past three years, pursued reforms aimed at restoring monetary discipline, improving the functioning of the foreign exchange market, and strengthening confidence in the Nigerian economy.
She stated, “We are beginning to see encouraging signs of progress. Headline inflation moderated to 14.63 per cent in September 2026, from a peak of 34.8 per cent in November 2024, while economic activity has continued to expand.”
However, she acknowledged that households and businesses continued to face considerable cost pressures, stressing that the bank remains committed to consolidating the gains in price stability and creating a more predictable macroeconomic environment.
On monetary policy, she recalled that the Monetary Policy Committee, at its 307th meeting in September 2026, reset the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent and recalibrated the standing facilities corridor to strengthen monetary policy transmission.
According to her, “This adjustment was an operational realignment intended to improve the effectiveness of the policy rate as the principal signal of monetary policy, without compromising the Bank’s commitment to price stability.”
On foreign exchange reforms, Sidi Ali said CBN had introduced measures to strengthen price discovery, improve transparency, and reinforce market conduct following the unification of the foreign exchange windows.
She identified the Electronic Foreign Exchange Matching System (EFEMS) and the Nigerian FX Code as key initiatives that had helped establish a more transparent and rules-based foreign exchange market.
Sidi Ali said, “These changes matter to importers, exporters, manufacturers and investors. A more transparent FX market provides a stronger basis for business planning and reduces the uncertainty associated with opaque trading arrangements.”
She also described the 2026 Foreign Exchange Manual as an important step in modernising the framework for foreign exchange transactions, particularly in trade documentation, export transactions, and cross-border payments.
Turning to payment infrastructure, Sidi Ali said international trade required more than the movement of goods, stressing the importance of efficient and secure payment arrangements.
She said, “A manufacturer in Lagos supplying customers in Accra, Nairobi or Johannesburg needs reliable arrangements for receiving payment, managing transaction costs and conducting business across borders.”
She added that regional initiatives, including the Pan-African Payment and Settlement System (PAPSS), offered opportunities to facilitate cross-border transactions and support trade within Africa, particularly as Nigerian businesses sought to take advantage of the African Continental Free Trade Area (AfCFTA).
On the banking sector, Sidi Ali said CBN’s recapitalisation programme was intended to strengthen financial institutions’ capacity to support the economy.
“A stronger banking system is better positioned to intermediate savings, finance productive activities, support international trade and withstand economic shocks,” she said.
She, however, acknowledged that access to affordable finance remained a major concern for many businesses, particularly micro, small and medium-sized enterprises.
Sidi Ali also urged Nigerian businesses to explore opportunities in non-oil exports, stating that agricultural products, manufactured goods, technology services, and creative industries have considerable potential to reach new markets and generate foreign exchange earnings.
She explained, “Realising this potential requires more than access to markets. Businesses must also invest in product quality, standards, packaging, competitiveness and the capacity to deliver consistently.”
She urged exporters to understand the requirements of their destination markets and build commercial relationships capable of sustaining demand.