Nigeria to Hit $1 Trillion Economy by 2030 — Cardoso

• CBN Governor Olayemi Cardoso predicts Nigeria’s economy will reach $1 trillion by 2030, emphasizing policies for sustainable financial growth
• The Nigerian economy grew by 2.98% in Q1 2024, with the services sector contributing significantly to GDP

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has declared that the nation’s economy will reach $1 trillion by 2030. Cardoso made this declaration on Friday during his presentation on the first half-year review of the Bank’s activities in 2024 before the Senate Committee on Banking, Insurance, and Other Financial Institutions.

Affirming the apex bank’s commitment to implementing policies that foster sustainable growth in the financial markets, the CBN Governor assured his determination to foster overall economic stability. Cardoso told the lawmakers that since assuming duty in October 2023, the Bank’s management had concentrated on stabilising the economy, restoring confidence in financial markets, and establishing a foundation for sustainable growth.

According to Cardoso, the resilience of the Nigerian economy in the first half of 2024 resulted in a growth rate of 2.98% in the first quarter, up from 2.31% during the same period last year. He emphasized that the Services sector was the main economic driver, contributing 58.04% to GDP with a growth rate of 4.32%. He also noted that the Industrial sector showed improvement, achieving a growth rate of 2.19%.

On the persistent inflationary pressures, with headline inflation rising from 29.90% in January to 34.19% in June 2024, Cardoso noted that the pace of monthly increases had moderated, suggesting the effectiveness of the Bank’s anti-inflationary measures. He also highlighted the significant narrowing of the spread between official and BDC rates, indicating successful price discovery and reduced arbitrage opportunities.

According to Cardoso, a notable increase in external reserves, largely attributed to receipts from crude oil-related taxes and third-party payments, is one of the strong indicators of the growing economy. “The ongoing recapitalisation efforts in the banking sector are focused on enhancing financial stability and driving progress toward reaching a $1 trillion economy by 2030,” he said.

He added that the capital adequacy ratio remained strong at 12.2%, the industry liquidity ratio increased to 46.2%, and the non-performing loan ratio fell to 3.8%, reflecting enhanced liquid assets and better risk asset quality. He further outlined key policy measures the Bank had implemented to tackle domestic macroeconomic challenges, including raising the policy rate to 26.25%, increasing Cash Reserve Ratios, normalising Open Market Operations, and adopting Inflation Targeting as a new monetary policy framework.

Senator Adetokunbo Abiru, representing Lagos East and Chairman of the Committee, lauded the CBN Governor and his team for their efforts to stabilise the economy since taking office.