Naira Gaining Preference Over Dollar, Says CBN Governor, Cardoso

“Nigerians are having greater confidence in their own currency,” CBN Governor Olayemi Cardoso said Tuesday, citing a shift in preference from dollars to naira amid ongoing economic reforms.

Confidence in the naira is rising among Nigerians, reflecting renewed optimism in the Central Bank of Nigeria’s reforms and improved macroeconomic conditions, CBN Governor Olayemi Cardoso said Tuesday.

Speaking at a post-Monetary Policy Committee (MPC) briefing in Abuja, Cardoso announced that the Committee voted unanimously to maintain all key monetary parameters for the third consecutive time “to allow inflation cool further.”

All 12 MPC members agreed to hold the Monetary Policy Rate (MPR) at 27.5%, retain the asymmetric corridor at +500/-100 basis points, keep the Cash Reserve Ratio at 50% for deposit money banks and 16% for merchant banks, and maintain the liquidity ratio at 30%.

Cardoso said recent CBN policy actions—such as a market-driven FX regime and tighter monetary control—are “beginning to deliver meaningful results.” One of the clearest indicators, he noted, is a shift in behavior among Nigerians toward embracing the naira.

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“Very importantly, Nigerians are having greater confidence in their own currency,” he said. “I was quite struck in having a discussion with somebody just yesterday… the travel agent said, ‘Please, I know you normally give me my money in dollars, but I’m very happy to take it in Naira.’ Those are the things that are happening across the board.”

He stressed that the narrowing gap between official and parallel exchange rates, as well as improved access to naira-denominated payment instruments abroad, are not temporary but “structural” improvements.

“A lot of what you see going on now is transformational. And they are here to stay. Some of the banks are now allowing you to use your Naira cards when you travel. Those things are here to stay. They are not a short-term measure,” Cardoso added.

The governor also cited endorsements from global institutions such as the IMF and Moody’s, which recently upgraded Nigeria’s economic outlook. “Potential investors take a cue from the IMF and other institutions… The Nigerian authorities have taken bold transformative measures to properly reposition the macroeconomic fundamentals of the country,” he said.