Since his appointment in September 2023 as the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, did not leave anyone in doubt as to his priority: a strong economy that can guarantee stability and growth. To achieve this, he has continued to introduce reforms for the benefit of Nigerians and the Nigerian economy. While reforms usually take time to become entrenched, the results of many of his actions have long started manifesting.
Take the foreign exchange market, for instance. As a result of Cardoso’s reforms, the story is beginning to change, with the naira gaining strength against its counterparts. It took several steps to achieve this. From introducing the highly successful foreign exchange (FX) code, to ensuring availability to those who truly need it for their business. As people say, it is now unwise to hoard dollars to make cool money, unless one is prepared to record a substantial loss.
But the FX market, though very important, is not the only issue Cardoso is paying his attention to. Foreign investment is equally, if not more, important to Nigeria.
During the recent inaugural Conference on Emerging Markets Economies, organised by the Ministry of Finance, Saudi Arabia, and International Monetary Fund (IMF) Regional Office in Riyadh, which he attended along with the Nigerian Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, Cardoso met with the Assistant Governor for Monetary Affairs, Saudi Arabia Central Bank – SAMA, Talal Al-Humond, on the sidelines. He canvassed stronger economic ties with the Middle East and the Nigerian diaspora community in the region, especially in Saudi Arabia where many Nigerians have made home.
It is also a known fact that Nigeria is among the countries with the highest number of continents to the annual Hajj exercise in Saudi Arabia. Same is true for the Umrah (lesser Hajj). Many Nigerians are studying or working in various institutions in the kingdom. So clearly, there will be a constant flow of money between Nigeria and Saudi Arabia as many residents of the Arabian nation do send money to family and friends back home.
But Cardoso also know that apart from expected foreign remittances, Nigeria stands to learn many lessons from Saudi Arabia in terms of infrastructural development, sporting events, tourism and even crowd management. Saudi Arabia has also gone far in the diversification of its economy to wean itself from relying on crude oil even though it has it in abundance. In responding, Talal Al-Humond assured Cardoso that the Saudi central bank would work with CBN to ensure the attainment of mutually beneficial objectives.
Shortly after his participation in the Saudi Conference, Cardoso was to host the Ambassador of the Kingdom of Saudi Arabia to Nigeria, Faisal bin Ibrahim Alghamdi, and his delegation on a courtesy visit to the CBN headquarters. He commended the Saudi government for its hospitality during the AIUla event hosted by the Saudi Ministry of Finance in collaboration with the International Monetary Fund (IMF) Regional Office in Riyadh. He reaffirmed the bank’s commitment to enhancing economic cooperation between Nigeria and the Kingdom of Saudi Arabia. Alghamdi, on his part, stressed the Kingdom’s readiness to work with Nigeria in key economic sectors, particularly in renewable energy, Agriculture, and Water connectivity.
Cardoso enjoys the strong support of the Nigerian government in this regards. Not long after Cardoso’s exploits, Nigeria signed a cooperation agreement with Saudi Arabia’s Halal Products Development Company (HPDC) to establish the country as a leading player in the global halal market valued at $7.7 trillion. The agreement, which was signed during the Makkah Halal Forum in Saudi Arabia, will facilitate investment, technical cooperation, and market access across key sectors, including food production, pharmaceuticals, finance, and livestock for both countries. As Vice President Kashim Shettima pointed out, the partnership represents a game-changing opportunity to transform Nigeria into a global halal economy powerhouse.
It is indeed clear that Nigeria and Saudi Arabia can leverage on their respective strengths for long-term economic growth and stability for their mutual benefits.
- Nasir is a journalist based in Abuja
