…Sector reforms instrumental to Fitch upgrade of credit rating—Standard Chartered
…Fintech, Micro-Lenders boost Nigeria’s credit inclusion – Popoola
By Charles Ebi
Central Bank of Nigeria ,CBN, showcased its bold reform agenda at a high-profile global forum at the Nasdaq MarketSite in New York, just days before the International Monetary Fund ,IMF, and World Bank Group ,WBG, Spring meetings.
This strategic summit, in collaboration with JP Morgan, the Nigerian Exchange Group ,NGX, and the African Private Capital Association ,AVCA, marked a pivotal moment in Nigeria’s economic renaissance.
Under the banner “The Nigeria Investment Agenda: Pathways for Growth & Global Partnerships”, the forum attracted an influential assembly of global investors, diaspora leaders, and financial power brokers eager to witness Nigeria’s economic transformation firsthand.
In his address, the CBN Governor, Olayemi Cardoso unveiled his visionary reform blueprint that has already begun reshaping Nigeria’s financial landscape through decisive monetary tightening, revolutionary FX market transparency, and fortified financial governance.
“These reforms aren’t merely policy adjustments”, Cardoso emphasized, “but foundational pillars rebuilding Nigeria’s economic architecture for generations to come”.
Governor Cardoso declared the CBN’s determination to restore market confidence. “We inherited a crisis of confidence but chose a different path. We’re not turning back”.
His resolute stance signaled Nigeria’s irreversible commitment to financial orthodoxy and stability.
The governor’s vision gained further dimension during a fireside chat with Nobel Prize-winning economist Dr. James Robinson.
During the chat, Cardoso articulated his ambitious mission to transform the CBN into a world-class institution commanding respect on the global stage while delivering excellence at home.
Reinforcing this narrative of renewal, Deputy Governor Muhammad Sani Abdullahi presented compelling evidence of Nigeria’s economic revival, highlighting surging foreign exchange turnover, promising disinflation signals, and strengthening external reserves.
“We’re witnessing the green shoots of recovery”, he remarked. “With our market-determined exchange rate and transparent, rules-based policy framework, international confidence in Nigeria’s economy is unmistakably returning”.
The Adviser to the CBN Governor on stakeholder engagement and strategic communication, Dr. Nkiru Balonwu, described the forum as a watershed moment in Nigeria’s engagement with global markets.
“Today represents more than a conversation, it’s an unprecedented opening of the books on the CBN’s transformation journey under Governor Cardoso”, she declared.
“We’re not just sharing progress; we’re co-creating the roadmap for sustainable partnerships that will unlock Nigeria’s true economic potential”.
Another high point of the forum was the panel discussion “Repricing Nigeria: Assessing the Scope for Sustained Change”. Moderated by Gavin Serkin of New Markets Media & Intelligence.
The star-studded panel featured Joyce Chang of JPMorgan Chase, Jason Rekate of Citi, Razia Khan of Standard Chartered, and Ahmad Zuaiter of Jadara Capital Partners.
The forum further demonstrated Nigeria’s global reach through the participation of distinguished diaspora members Mr. Robert Agbede, Prof. Melvin Ayogu, and Dr. Aloysius Ordu, representing the CBN Board and Monetary Policy Committee.
Meanwhile, Standard Chartered Bank has hailed the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, for his transformative policies in the financial sector, which have repositioned the Nigerian economy on the path of sustainable growth.
Standard Chartered, in a letter to the apex bank governor dated April 15, 2025, and signed by the Group Chief Executive, Bill Winters, said that Cardoso’s financial sector reforms have been instrumental to Fitch’s upgrade of Nigeria’s credit rating.
Fitch Ratings had last week upgraded Nigeria’s outlook to Stable from Negative, highlighting renewed confidence in the government’s commitment to far-reaching policy reforms.
While Nigeria’s long-term foreign currency rating remains at ‘B’, Fitch said the economic direction taken since mid-2023 is starting to bear fruit.
In the Standard Chartered Bank letter to the CBN Governor seen by Aljazirah Nigeria , Winters said the upgrade is a direct reflection of the transformational reforms the Nigerian government has embarked upon since the administration of President Bola Tinubu took office in May 2023.
He said that under the leadership of Cardoso as Governor of the CBN, the business community and financial markets have witnessed significant positive reforms that have transformed the economy and markets and placed growth on a sustainable upward path.
The rating upgrade, he stated further, is more remarkable as it comes at a time of great uncertainty over the global economy, further underscoring the strong confidence and conviction in Nigeria’s economic outlook.
As Sovereign Rating Advisor to the Nigerian Government for over a decade, the Standard Chartered Bank boss said the bank is honoured to have worked alongside Cardoso to make this upgrade a reality.
He expressed appreciation for all the support that the CBN, under Cardoso, has afforded the bank and assured of continued partnership that would boost the Nigerian economy.
The letter reads in part, “I write to congratulate you on behalf of Standard Chartered Bank on the recent upgrade of Nigeria’s Sovereign Credit Rating to B with a stable outlook by Fitch Ratings.
“The upgrade is a direct reflection of the transformational reforms the Nigerian government embarked upon when the administration took office in May 2023.
“Under your leadership as Governor of the CBN, the business community and financial markets have witnessed significant positive reforms that have transformed the economy and markets and placed growth on a sustainable upward path.
“The rating upgrade is all the more remarkable in that it comes at a time of great uncertainty over the global economy, further underscoring the strong confidence and conviction in Nigeria’s outlook.
“As Sovereign Rating Advisor to the Nigerian Government for over a decade, we are honoured to have worked alongside you to make this upgrade a reality. We appreciate all the support CBN has afforded us and hope that you have found our contributions helpful.
“As always, we remain committed to supporting Nigeria in its work to consolidate the gains from its ongoing reform programme to achieve further sovereign rating upgrades for the benefit of the entire nation”.
Key reforms such as exchange rate liberalisation, tighter monetary policy, removal of fuel subsidies, and an end to deficit monetisation have improved macroeconomic credibility, reduced distortions, and enhanced resilience to shocks.
A key turning point for the Nigerian economy was the Central Bank of Nigeria’s introduction of a new FX matching platform and FX code in 2024 to enhance price discovery and transparency.
Following a 40% naira depreciation last year, these reforms helped narrow the official-parallel market gap and boosted FX liquidity.
Net FX inflows through official and autonomous channels surged by 89% in Q4 2024, compared to an 8% rise the previous year.
However, Fitch expects modest depreciation in the short term, particularly as external risks mount.
Gross reserves climbed to $41bn by end-2024, before easing to $38bn due to external debt servicing, including a $1.1bn Eurobond repayment due in November.
Nigeria’s current account recorded a $6.8bn surplus in 2024, 6.6% of GDP, aided by FX formalisation and reduced import costs.
Net external reserves stand at about $23bn, and the CBN has reduced its reliance on FX swaps, with such liabilities now just 14% of gross reserves, down from 25% in November last year.
In a similar vein, Nigeria’s credit ecosystem has witnessed significant transformation in recent years, with improved access to consumer credit and increased participation from non-traditional lenders such as fintech firms and micro-lending institutions.
This development was highlighted by Chairman of the Credit Bureau Association of Nigeria, Mr. Tunde Popoola during an interview in Lagos.
According to Popoola, the nation’s credit infrastructure has undergone remarkable improvement over the past two to three years, with a growing number of players contributing to a more inclusive and efficient lending environment.
He noted that the expansion of access to credit has been catalyzed by the presence of credit bureaus and the emergence of innovative lenders beyond the traditional banking sector.
“Nigeria has done well in the last two to three years”, Popoola stated. “We’ve had significant improvement in access to credit, driven by developments in infrastructure and increased participation from micro-lenders and fintech companies”.
Popoola explained that these new entrants have introduced flexibility and scale to consumer lending, offering credit to segments of the population that were previously underserved.
While commercial banks continue to play a dominant role in deposit mobilization and loan disbursement, the involvement of smaller, tech-driven entities has expanded the reach of credit to individuals and small businesses.
“Fintechs and micro-lenders are filling the gaps left by traditional institutions”, he noted. “These players are enabling Nigerians to access credit more easily, using innovative platforms and alternative data to assess creditworthiness”.
Central to this progress, Popoola emphasized, is the role of credit bureaus, which has created a more transparent and structured environment for lending. Since their establishment in 2009, credit bureaus have become integral to Nigeria’s financial infrastructure, offering tools that allow lenders to make informed decisions based on borrowers’ credit histories.
“The credit infrastructure was weak before the introduction of credit bureau”, Popoola said. “Today, these institutions provide timely and accurate information that helps identify credible borrowers and monitor loan performance”.
He also pointed out that the services of credit bureaus are instrumental in managing credit risk. Through data analytics and profiling solutions, lenders are able to reduce default rates and maintain healthy loan portfolios.
“Even in cases of delinquency or default, the bureaus have developed products and services to help manage such risks effectively”, he added.
Popoola reiterated the importance of collaboration between regulators, credit bureaus, and market participants to sustain the momentum in credit accessibility.
He called for continuous innovation and regulatory support to enhance financial inclusion and strengthen Nigeria’s overall economic resilience
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