CBN intensifies efforts to boost Product Quality, Export Competitiveness, Diaspora Remittances

The Central Bank of Nigeria (CBN) is doubling down on strategic interventions aimed at increasing Nigeria’s export competitiveness, improving foreign exchange (forex) inflow, and strengthening the economy.

Under the leadership of Governor Olayemi Cardoso, the apex bank has adopted a multi-faceted approach to empower businesses through technology investments, capacity building, and enhanced collaboration among key stakeholders including banks, policymakers, and business leaders.

A key focus of the CBN’s strategy is raising the standard of Nigerian products to meet international benchmarks. By improving quality and packaging, the bank hopes to inspire global confidence in made-in-Nigeria goods and increase export earnings. This, in turn, is expected to enhance forex liquidity in the economy, supporting exchange rate stability and price control.

Strengthening Export Capacity

The CBN and the Bankers’ Committee are actively engaging with the business community to support improvements in product quality, branding, and packaging — areas critical to ensuring Nigeria’s exports can compete globally. Director of Consumer Protection at the CBN, Dr. Aisha Olatinwo, represented by Deputy Director Nelson Amuwa, stated that local products often fail to meet international standards due to constraints in branding, packaging, and market readiness. However, she reaffirmed the bank’s commitment to addressing these barriers.

Executive Chairman of the Lagos State Internal Revenue Service, Ayodele Subair, emphasized the role of the financial sector in supporting local businesses and driving export diversification. He praised the Bankers’ Committee for its continuous efforts in fostering financial inclusion and uplifting the local production sector.

Dr. Bamidele Ayemibo, speaking during a stakeholder engagement, encouraged Nigerian manufacturers to adopt global standards in packaging and quality control. He highlighted the importance of telling a brand story through packaging, stressing that Nigerian products should not only protect their contents but also appeal emotionally and culturally to consumers.

Addressing Financial Challenges in Manufacturing

While the CBN’s initiatives are widely lauded, manufacturers continue to face significant hurdles. President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, lamented the high cost of funds, revealing that the sector spent over N1.3 trillion on interest payments in 2024 alone. He called on the CBN to introduce long-term financing options at reduced interest rates to drive industrial productivity.

Boosting Diaspora Remittances and Forex Inflows

The CBN is also targeting diaspora remittances, which currently bring in about $23 billion annually. Through newly launched financial products — the Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account — the bank hopes to streamline remittances, foster financial inclusion among Nigerians abroad, and encourage investment in the local economy.

Additionally, revised guidelines for International Money Transfer Operators (IMTOs) are aimed at increasing formal remittance flows and ensuring timely disbursement of funds. IMTOs must now partner with Authorised Dealer Banks (ADBs) and can access naira liquidity directly from the CBN, easing the process of payout to beneficiaries.

The guidelines also prevent IMTOs from sourcing forex from the local market, ensuring that remittances come directly through legitimate and regulated channels. Beneficiaries can receive up to $200 in cash or through bank transfers — a move designed to balance liquidity needs with anti-money laundering measures.

Global Validation and Investor Confidence

International observers have acknowledged the positive trajectory of Nigeria’s forex environment. Director of Trading at Verto, Charlie Bird, said Nigeria is now considered a preferred destination for foreign investors due to improved dollar liquidity — a direct result of CBN reforms.

President of the Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, added that the central bank’s policies have led to sustained growth in remittances. He believes that ongoing efforts to build public trust in the FX market and banking system will further bolster remittance inflows and economic growth.

Remittances: Africa’s Hidden Growth Engine

Western Union’s Regional VP for Africa, Mohamed Touhami el Ouazzani, stated that remittances — valued at $90 billion across Africa in 2023 — are more than just financial transfers; they are lifelines that drive entrepreneurship, infrastructure development, and inclusive financial systems.

In Nigeria, tapping into this powerful source of forex is central to the CBN’s agenda. With continued focus on supporting diaspora transactions, improving export quality, and fostering investor confidence, the CBN aims to position Nigeria for sustained economic resilience and growth.