FX Backlog Clearance, Transparency Boost Nigeria’s Reserves — CBN Governor

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called for a pragmatic and collaborative approach to regulating cryptocurrency, recognizing its rapid expansion and the need for a structured framework to manage its influence on the financial system.

Speaking at the inaugural CBN Governor’s Lecture Series held at Lagos Business School, Cardoso reflected on the evolution of digital currencies and the regulatory vacuum that allowed crypto trading to grow largely unchecked. He recounted how, two years ago, difficulties in accessing traditional coin exchange platforms led many Nigerians to turn to cryptocurrency alternatives.

He described the emergence of a parallel financial system operating outside the oversight of regulators. “In many respects, the regulators left this alone, and people believed that perhaps it didn’t exist, until, of course, certain things happened, and then it became clearer that there was certainly a market there,” he said.

Cardoso emphasized the importance of developing a clear roadmap for innovation and digital adoption. He noted that Nigeria has been ranked among the top global markets for cryptocurrency trading, citing reports that placed the country second worldwide in trading volume—though he acknowledged uncertainty about the accuracy of those statistics.

In response to the growing prominence of digital assets, Cardoso stated that the CBN is working closely with the Securities and Exchange Commission and other regulatory bodies to build a sustainable framework. “We’re deep in collaboration to ensure that all the different regulatory authorities can midwife through the process that is sustained with respect to digital currency,” he explained.

He stressed that the regulatory process is ongoing and must be approached with care. “It’s a work in progress. It’s not something to wish away,” he added, encouraging young Nigerians to actively engage with the future of finance.

Beyond cryptocurrency, Cardoso outlined the CBN’s broader commitment to innovation and digital transformation. He revealed that the bank has assembled a team of experts to explore digital currency initiatives, including central bank digital currencies (CBDCs). “We’re doing that, but it’s early times yet. But I do believe that there is certainly a way forward,” he said.

Addressing misconceptions about careers in central banking, Cardoso encouraged young people—especially women—to consider roles within the institution. “Contrary to what you may think, you will find that there are people who work in the central bank who have multidisciplinary skills. They’re not all economists, they’re not all financiers,” he noted.