Cardoso urges Africa to build resilient institutions amid global shocks

The governor of the Central Bank of Nigeria, Olayemi Cardoso, has urged African countries to strengthen their institutions to better withstand external economic pressures, warning that the continent remains vulnerable to global disruptions.

He made the call at the opening of the 32nd Annual Meetings of the African Export-Import Bank (Afreximbank) on Wednesday in Abuja, where he addressed policymakers, investors, and development experts from across the continent and beyond.

“This is a moment not just to look back but to look forward,” Mr Cardoso said. “A future that calls for even greater ambitions and clarity of purpose; a future defined by dream growth that is Africa-led and African-owned.”

He said Africa must act deliberately to build institutional resilience in the face of rising trade protectionism, economic fragmentation, and climate-related challenges.

“Rising trade protectionism, global economic fragmentation and shifting geopolitical dynamics are not only undermining Africa’s developmental prospects, they are also threatening the coherence of the international ecosystem,” he said.

He argued that resilience must be “engineered” through long-term planning, sound governance, and public trust. “Great ideas cannot succeed on weak foundations,” he said, emphasising the importance of transparency and crisis preparedness.

Afreximbank’s evolving role

The CBN governor praised Afreximbank’s transition from a trade finance provider into what he called “a trusted pan-African partner, strategic convener and catalyst for change.”

Founded in Abuja in 1993, the bank has grown into one of Africa’s major development finance institutions, with 51 African shareholder states and a wide range of public and private sector partners.

Mr Cardoso cited several of the bank’s key interventions, including the $10 billion Counter-Cyclical Trade Liquidity Facility launched in 2015 to help economies facing foreign exchange shortages, and the $2 billion COVID-19 vaccine financing programme arranged in partnership with the African Union in 2021.

He described the 32nd anniversary of the bank as a “momentous occasion” and credited the institution for inspiring hope and driving collective action across the continent.

Nigeria’s engagement

Nigeria, Mr Cardoso said, remains the largest single beneficiary of Afreximbank’s support, having received about $52 billion in trade and project financing to date. He also highlighted the country’s role as a founding shareholder and a major partner in energy-sector investments, including funding for the Dangote Refinery and the Port Harcourt Refinery.

The governor said this level of support reflects the scale of Nigeria’s economy and the depth of its engagement with the bank.

Mr Cardoso also spoke on recent reforms by the CBN aimed at boosting diaspora participation in the economy. These include the introduction of two diaspora-focused financial products—the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA)—designed to improve remittance flows and foreign investment.

“This would harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investment in critical sectors of the economy,” he said.

He added that the CBN has prioritised rebuilding trust with markets, citizens, and international partners. “We recognise that institutional credibility is the anchor of effective monetary and financial policy,” he said.

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The governor also praised Afreximbank for expanding the definition of the African diaspora to include Afro-descendants in the Caribbean and the Americas. “The African diaspora does not just reflect the African continent, but it reflects those outside of the African continent that are indeed the diasporas all the way to the Caribbean,” he said.

He called for more structured engagement between African states and their diaspora communities, describing it as “vital” to Africa’s development agenda.

The Afreximbank meetings, which run from 25 to 27 June at the Transcorp Hilton Hotel in Abuja, are themed “Building the Future on Decades of Resilience.”

More than 6,000 participants are attending the event, which features panel sessions, economic outlook reports, and regional development discussions.