The Central Bank of Nigeria (CBN) has identified macroeconomic stability as a major requirement for strengthening the country’s competitiveness in international trade, saying businesses need a predictable economic environment to plan investments and expand operations.
The position was communicated by the bank’s Director of Stakeholder Engagement and Institutional Relations Department, Hakama Sidi Ali, during the CBN Special Day at the 40th Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry.
According to the bank, economic stability, foreign exchange market reforms, efficient cross-border payment systems and a resilient banking sector are important factors that can improve Nigeria’s participation in regional and international trade.
Sidi Ali explained that businesses require stable economic conditions to estimate production costs, negotiate contracts, manage cash flows and make long-term investment decisions.
She noted that economic stability goes beyond official economic indicators because it directly affects the daily operations of companies.
For manufacturers, exporters and importers, changes in exchange rates and inflation can influence the cost of raw materials, transportation, production and finished goods.
When businesses cannot predict these costs, they may struggle to establish competitive prices or commit to long-term contracts.
The CBN said it had pursued several reforms over the past three years to restore monetary discipline, improve the foreign exchange market and strengthen confidence in the Nigerian economy.
One of the indicators highlighted by the bank was the moderation in headline inflation to 14.63 per cent in September 2026, compared with a peak of 34.8 per cent in November 2024.
However, the bank acknowledged that households and businesses continued to face considerable cost pressures.
On monetary policy, Sidi Ali referred to the Monetary Policy Committee’s September 2026 decision to reduce the Monetary Policy Rate from 26.5 per cent to 23 per cent.
She described the adjustment as an operational realignment intended to improve the transmission of monetary policy while maintaining the bank’s commitment to price stability.
The CBN also highlighted its foreign exchange reforms, including the Electronic Foreign Exchange Matching System and the Nigerian FX Code.
These initiatives are intended to improve transparency, strengthen market conduct and support a more predictable foreign exchange environment.
The bank said a transparent foreign exchange market would help importers, exporters, manufacturers and investors make better business decisions.
Another major area highlighted was cross-border payment infrastructure.
The CBN said international trade requires efficient payment arrangements that allow businesses to receive funds, settle transactions and manage costs when dealing with customers in other countries.
It identified the Pan-African Payment and Settlement System as an initiative with the potential to support transactions between African countries.
The system is designed to facilitate cross-border payments in local currencies, potentially reducing dependence on third-party currencies for some regional transactions.
The bank also linked financial sector reforms to Nigeria’s ability to finance productive economic activities.
According to Sidi Ali, the banking sector recapitalisation programme is intended to strengthen financial institutions and improve their capacity to support businesses, trade and investment.
However, access to affordable financing remains a concern, particularly for micro, small and medium-sized enterprises.
The CBN therefore encouraged Nigerian businesses to explore opportunities in non-oil exports, including agriculture, manufactured products, technology services and creative industries.
It also stressed the importance of product quality, packaging, international standards and reliable delivery systems.
The bank’s message comes as Nigeria seeks to expand its participation in the African Continental Free Trade Area and increase the contribution of non-oil exports to foreign exchange earnings.
For businesses to benefit from wider market access, they must be able to produce competitively, meet international standards and receive payments efficiently.
The CBN’s position suggests that monetary stability and financial sector development will remain important to Nigeria’s long-term trade strategy.
