Oil
Cardoso urges Nigeria to reduce oil dependence through reforms
Central Bank of Nigeria Governor Olayemi Cardoso stated that the nation must diversify its revenue sources and sustain economic reforms to ensure long-term stability.
Key points
- Olayemi Cardoso spoke at the 2026 IMF and World Bank annual meetings in Bangkok.
- Nigeria's net external reserves dropped to $3 billion and FX backlogs exceeded $7 billion during the economic crisis.
- The central bank implemented orthodox monetary policies to clear backlogs and stabilise the macroeconomic environment.
- IMF Managing Director Kristalina Georgieva warned that global economic growth faces risks from rising energy prices and uneven investment.
What happened
According to TheCable, Central Bank of Nigeria Governor Olayemi Cardoso stated that relying solely on crude oil is an unsustainable economic model. Speaking during a panel at the annual meetings of the International Monetary Fund and the World Bank in Bangkok, Cardoso explained that production challenges and revenue constraints forced policymakers to seek alternative foreign exchange streams and address structural vulnerabilities.
During the period of acute economic strain, net external reserves fell to approximately $3 billion, while uncleared foreign exchange obligations surpassed $7 billion, according to the central bank governor. In response, the apex bank adopted orthodox monetary measures, cleared backlogs, and removed barriers to boost formal diaspora remittances. Cardoso noted that these steps have improved macroeconomic stability, leading to re-inclusion in major indices such as the FTSE and J.P. Morgan Bond index.
Why it matters
World Bank figures for 2025 show that fuel exports account for 85.9 percent of Nigeria's merchandise exports, highlighting the heavy exposure of the economy to petroleum price fluctuations compared to a global average of 9.5 percent. Cardoso pointed to domestic processing ventures, such as the Dangote refinery, as key developments that could curb the cycle of exporting crude oil while importing refined petroleum products.
At the same panel, IMF Managing Director Kristalina Georgieva maintained the global growth forecast at 3.1 percent for 2026. However, she cautioned that economic expansion remains fragile. Georgieva warned that elevated fuel and food prices could heighten inflationary pressures, keeping borrowing costs high for heavily indebted nations.
What comes next
Cardoso emphasised that Nigeria must maintain its current reform trajectory to solidify investor trust. He noted that lasting economic change requires consistent execution rather than policy pronouncements alone. Meanwhile, the IMF urged global policymakers to address underlying vulnerabilities and build resilience against external shocks as regional divergences in growth persist.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
