Cardoso Calls For Increased Oil Production, Economic Diversification

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has urged for an urgent boost in oil production and a strategic diversification of the economy to stabilize the volatile exchange rate.

Speaking after the recent Monetary Policy Committee (MPC) meeting, Cardoso stressed that merely enhancing foreign exchange inflows will not suffice without addressing the fundamental economic issues facing Nigeria.

He noted that while initiatives to liberalize diaspora remittances have shown promise, they cannot replace the need for a more resilient economic structure.

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“Oil production must be ramped up significantly to support the economy, and we must move beyond our dependence on oil,” he stated.

Cardoso highlighted Nigeria’s vulnerability as an oil-dependent nation, pointing out that fluctuations in global oil prices and production levels affect economic stability.

He called for increased investment in non-oil exports and emphasized the importance of import substitution.

As Nigeria’s oil production rose to 1.352 million barrels per day in August, Cardoso expressed optimism about the potential impact of the Dangote refinery on reducing import reliance and improving the country’s balance of payments.

He projected that as domestic refining capacity increases, the need for imports will decrease, ultimately supporting the Naira.

“The refinery will not only help reduce import costs but will also enhance our export potential,” he added.