By Godswill Michael
The Central Bank of Nigeria (CBN) says its latest engagements with Asian financial institutions are aimed at building stronger and more sustainable connections that will enable capital to stay, return and grow in Nigeria.
CBN Governor Olayemi Cardoso stated this on Thursday during the Nigeria–Asia Financial Connectivity Dialogue in Singapore, where he outlined Nigeria’s ambition to develop deeper, more liquid and internationally connected financial markets.
Cardoso said Nigeria’s financial-sector reforms should go beyond attracting capital into the country, stressing that investors must have sufficient confidence to retain their investments and expand their participation.
“The real test of reform is not whether you can attract capital once; it is whether you create the confidence for capital to stay, return and grow,” he said.
Capital retention, in this context, refers to Nigeria’s ability to retain investments that have already entered the country, encourage investors to reinvest and create conditions that would make them willing to return with additional capital.
Cardoso said credible monetary policy, stronger governance, improved market functioning and predictable rules would be critical to creating an environment conducive to sustained domestic and international investment.
The governor’s comments came as the CBN undertook a series of engagements in Singapore aimed at strengthening Nigeria’s financial connectivity with Asia through institutional cooperation, financial-market development and innovation.
The engagements included discussions with the Monetary Authority of Singapore (MAS), the signing of a Memorandum of Understanding with the Global Finance & Technology Network, and the Nigeria–Asia Financial Connectivity Dialogue, convened by the CBN in collaboration with J.P. Morgan, Nigerian Exchange Group and FMDQ Group.
During discussions with the Monetary Authority of Singapore, the CBN delegation exchanged views on financial-sector development, regulation, market connectivity and innovation.
According to the apex bank, the discussions also provided an opportunity for both sides to share experiences and explore how stronger institutional relationships could support financial-market development and the adoption of emerging technologies.