The Central Bank of Nigeria (CBN) has initiated efforts to strengthen Nigeria's financial connections with Singapore and other Asian markets. CBN Governor Olayemi Cardoso led a delegation to Singapore, where they engaged with the Monetary Authority of Singapore (MAS) and signed a Memorandum of Understanding (MoU) with the Global Finance & Technology Network (GFTN). These meetings aimed to enhance financial market development, attract investment, and promote financial innovation between Nigeria and Asia.
During the meeting with MAS, the CBN delegation discussed financial sector development, regulation, market connectivity, and innovation. The two sides explored areas for stronger institutional cooperation to support financial market development and the use of emerging technologies. This engagement is part of the CBN's broader strategy to build deeper, more liquid, and internationally connected financial markets.
The CBN and GFTN signed an MoU to promote cooperation in financial innovation, providing a framework for connecting institutions and innovation ecosystems in Nigeria and Singapore. This agreement aims to identify areas for practical cooperation and support the development of financial markets. The CBN organized the Nigeria-Asia Financial Connectivity Dialogue in partnership with J.P. Morgan, Nigerian Exchange Group (NGX), and FMDQ Group.
At the Nigeria-Asia Financial Connectivity Dialogue, Cardoso emphasized the importance of credible monetary policy, stronger governance, improved market operations, and predictable rules in attracting long-term investment. He highlighted that reforms in the foreign exchange market aim to remove distortions, improve transparency, and restore confidence among market participants. The dialogue brought together investors, financial institutions, businesses, and Nigerians living and working across Asia.
The panel discussion at the dialogue featured NGX Group Managing Director/CEO Temi Popoola, FMDQ Group Managing Director/CEO Zeal Akaraiwe, CBN Director of Trade and Exchange Aderinola Shonekan, and Special Adviser to the Governor on Financial Markets and Economic Policy Olumayokun Ajibade. The participants discussed Nigeria's economic reforms, capital formation, foreign exchange market, and the development of deeper financial markets.
Cardoso identified opportunities for stronger links between Nigerian and Asian banks, improved payment and settlement systems, and greater participation by Nigerians living and working in the region. He also highlighted the role of financial technology and artificial intelligence in improving financial services, managing risks, promoting financial inclusion, and strengthening regulation.
The CBN's engagements in Singapore are part of a wider program of meetings across Asia, including further engagements in Beijing. The governor's visit aims to build lasting relationships between financial institutions, businesses, and markets. Nigeria's usable reserves stood at $859m in 2023, according to the CBN, and the governor emphasized that the stabilisation of the economy should provide the foundation for greater participation by institutional investors and stronger links with international financial markets.
Key points
- The CBN has signed an MoU with GFTN to promote cooperation in financial innovation.
- The CBN Governor emphasized the importance of credible monetary policy in attracting long-term investment.
- The engagements in Singapore aim to build lasting relationships between financial institutions, businesses, and markets.
