AFC Appoints CBN Governor, Yemi Cardoso Board Chairman

The Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, yesterday announced the appointment of  the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi  Cardoso as Chairman of its Board of Directors. He succeeds the immediate-past Chair, Ireti Samuel-Ogbu, who served the Corporation meritoriously during her tenure and continues to serve as a board member.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele and  Cardoso, yesterday wooed investors with commitments to sustain economic reforms, improve the investment climate and attract long-term capital as the federal government seeks to mobilise $78.5 billion for 65 projects across key sectors of the economy.

Also yesterday, the Dangote Group endorsed the federal government’s reforms, with its Group Chief Economist, Hassan Mammud, saying fiscal and monetary policy changes had helped stabilise investments in the Dangote Refinery and other subsidiaries. He urged international investors to invest in Nigeria, describing the country as an emerging model for other African economies.

At an investors’ forum in Bangkok, Thailand, held on the sidelines of the ongoing International Monetary Fund and World Bank Group Annual Meetings, the federal government’s officials outlined the government’s priorities, including reducing inflation to single digits, addressing power sector constraints, improving regulatory efficiency and providing clearer fiscal data to support investment decisions.

A new feature introduced this year was a deal room that designed to connect investors with key policymakers, guide them through available investment opportunities and answer questions about investing in Nigeria.

The initiative is intended to give investors direct access to relevant government officials and help convert interest in the country’s investment pipeline into actual commitments.

The pipeline comprises 65 projects requiring a total of $78.5 billion, with energy and transport accounting for almost four-fifths of the funding requirement.

According to the project breakdown presented at the forum, oil, gas and power account for 25 projects requiring $36.4 billion, while transport and maritime account for eight projects valued at $25 billion.

Agriculture and agro-processing account for six projects requiring $9.8 billion, while industry, manufacturing and mining comprise 17 projects requiring $6.6 billion.

Technology, health and urban services account for the remaining nine projects, with a combined capital requirement of $700 million.

The government presented investment opportunities across different funding categories, from projects requiring less than $100 million to those needing $1 billion or more.

The pipeline ranges from $1 million to $15 billion per project, with a median capital requirement of $153 million. Of the 65 projects, 48 require less than $500 million, while 17, valued at a combined $72.3 billion, require at least $1 billion each.

The government is also seeking to strengthen investor participation by highlighting the protections available to foreign investors.

These include permission for 100 per cent foreign ownership in most sectors, full repatriation of capital and profits with a Certificate of Capital Importation, double taxation and bilateral investment treaties, and Nigeria’s membership of the International Centre for Settlement of Investment Disputes (ICSID).

The investment framework also includes a five per cent annual tax credit on qualifying capital expenditure for five years under the Economic Development Tax Incentive.

Oyedele called on investors to consider longer-term commitments, particularly as interest rates begin to decline and the relative attractiveness of fixed-income investments changes.

He asked investors what the government needed to do to encourage them to commit capital for longer periods and shift from foreign portfolio investment to foreign direct investment.

“We know that, for example, as interest rates start to come down, fixed income may be less attractive, but actually, if you consider the risk and the reward, it remains attractive. But what is even better is that the Internal Rate of Return (IRR) for equity investment and FDI gets more attractive, and this is where we want to go to attract more patient capital,” he said.

Speaking at the forum, Oyedele said the government was strengthening collaboration between fiscal and monetary authorities. He added that reducing inflation would help lower borrowing costs and ease pressure on public finances.

“If I want to even just sound selfish from the fiscal side, whatever we do to bring inflation to a single digit, thereby creating the conditions for interest rate to also be single digits will save the fiscal side as of 2026 numbers more than $10 billion. So, this is this is a top priority for us,” he said.

He added that the stability and gradual appreciation of the naira were helping to moderate inflationary pressures.

“The good thing is because of the way the central bank has been able to help us manage the FX environment generally, we have seen the naira not only being stable but steadily appreciative, and the impact on that on inflation is downward, right? So, which is good.”

Oyedele said the government would focus on five major areas of reform: agriculture, power, inflation management, regulatory efficiency and data transparency.

On power, he said, “You cannot power a $1 trillion economy in darkness. It’s impossible.”

He explained that the government was examining market-reflective pricing, transmission challenges and efficiency in the electricity sector, which remain important considerations for investors seeking to establish or expand businesses in Nigeria.

On regulatory reform, Oyedele said excessive regulation, unclear rules and administrative burdens imposed significant costs on businesses.

“We estimate that overregulation, regulatory burden, lack of clarity, and all of those excessive burden that we post on businesses actually are costing us more than the combined revenue from corporate tax, personal income tax and VAT combined,” he said.

He added that the government was developing a framework for economic policy to prevent the arbitrary introduction of new rules, fees and licences.

On data transparency, Oyedele acknowledged concerns about the availability and consistency of Nigeria’s fiscal statistics, particularly the tax-to-GDP ratio. He said the Ministry of Finance was finalising arrangements to make relevant information available and accessible on its website.

“So, we are currently finalising all of that, and it will be available on the website of the Ministry of Finance, finance.gov.ng. It will be updated timely. It will be accessible. It will be credible,” he said.

Cardoso, in his remarks, said the government’s reforms were beginning to provide greater stability for investment and economic growth. He emphasised that lower inflation remained critical to improving the welfare of ordinary Nigerians.

“The reason why we felt it was important to give ourselves this as a target is to recognise the fact that inflation is probably the biggest stance on the poor, and so it is critical that we bring it down to levels that are more manageable, rather than the situation where you feel okay, you’re lower double digits, and it’s okay. It isn’t okay,” he said.

Cardoso said inflation had declined from about 34–35 per cent to approximately 15 per cent, describing the reduction as significant but insisting that the central bank would not become complacent.

“Our medium-term target is to bring it down to single digits. Of course, as we embrace inflation targeting, that will obviously be a lot more open and transparent, and people will be able to have a clearer sense of the road of travel,” he said.

He also pointed to Nigeria’s external reserves, which he said had reached their highest level in 18 years, describing them as a buffer against external shocks.

According to Cardoso, the reforms had helped Nigeria withstand global pressures, including the effects of war and discussions around tariffs, while the exchange rate had remained stable and appreciated.

Responding to concerns that ordinary Nigerians were yet to feel the benefits of the reforms, Cardoso said the stability provided by the policies had helped prevent a worse outcome.

AFC Appoints Cardoso Board Chairman

The Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, yesterday announced the appointment of Mr. Olayemi Cardoso as Chairman of its Board of Directors.

A statement which announced this yesterday, stated that Cardoso brings extensive experience spanning international banking, investment management, economic policy and public sector leadership.

“Since assuming office as Governor of the CBN in September 2023, he has led a far-reaching programme of monetary, financial-sector, and institutional reforms to restore macroeconomic stability, strengthen policy credibility, and rebuild investor confidence in Nigeria’s economy.

“Under his leadership, the CBN has implemented significant reforms to Nigeria’s foreign exchange market, addressed longstanding foreign exchange obligations, strengthened monetary policy transmission, and enhanced institutional governance and transparency.

“The Bank has also concluded a recapitalisation programme for the banking sector, aimed at strengthening the resilience and capacity of Nigeria’s financial system to support sustainable economic growth.

“Prior to his appointment as Governor, Mr. Cardoso built a distinguished career in international banking and public service, including a 12-year tenure as Chairman of Citibank Nigeria and service as Commissioner for Economic Planning and Budget in Lagos State.

“In the latter role, he contributed to economic planning and fiscal management in one of Africa’s largest economies. He holds a degree from Aston University in the United Kingdom and a master’s in public administration from Harvard Kennedy School, where he also served on the Alumni Board,” it added.

It further stated that Cardoso’s appointment came as the AFC continued to expand its role in financing and developing strategic infrastructure assets that address Africa’s infrastructure gap, accelerate industrialisation and strengthen regional integration.

“His experience in financial sector reform, institutional governance and capital markets will provide valuable perspective on the Corporation’s strategic direction as it mobilises investment to unlock Africa’s economic potential,” it added.

President & CEO of AFC, Samaila Zubairu, was quoted to have said: “We are delighted to welcome Mr Cardoso as our Board Chairman. He shares our conviction that Africa’s lasting stability depends on its productive capacity. His leadership will strengthen AFC as we advance The Africa We Build 2050, mobilising African capital to build the infrastructure and industries that create jobs, prosperity and dignity for our people. We also sincerely thank Mrs Samuel-Ogbu for her dedication and contribution to AFC’s board during her tenure.”

Commenting on the appointment, Cardoso said: “A more productive Africa is a more stable Africa. AFC has the credibility and track record to mobilise capital and build the infrastructure and industries that drive transformation. I look forward to working with the Board, management and member states to advance The Africa We Build 2050. Our measure of success must be the productive capacity we create, the industries we enable and the jobs we support.”

Dangote Group Applauds FG’s Reforms, Says Policy Stability Boosted Confidence in Refinery Investment

The Dangote Group also endorsed the government’s reforms, with its Group Chief Economist, Hassan Mammud, saying fiscal and monetary policy changes helped the Group stabilise its operations and improve investment projections.

Mammud, who represented the President of the Dangote Group, Alhaji Aliko Dangote, at the forum, said the transparency and credibility of monetary policy supported the group’s investment in its refinery investment.

He said policy consistency and incentives available to businesses operating in an export-free zone were important factors in building investor confidence.

“The transparency and the credibility we have seen in that has significantly enabled the Dangote Group to have good projections and was able to come out of the woods from his investment of about $20 billion in the refinery,” he said.

Mammud urged international investors to consider Nigeria, describing the country’s reform experience as a model for other African economies.

“Please come into Nigeria, bring your investment. Nigeria is actually a symbol to other African countries now,” he said.

Cardoso welcomed the group’s comments, noting that the reforms had helped address the challenges businesses faced when exporting at one exchange rate and importing at another.

“The ability of Dangote to take bull by the horns and at least break that cycle and enter the value-added chain is one to be commended,” he said.

The endorsement came as the government sought to use the investors’ forum and its new deal room to present specific projects, clarify investment conditions and encourage investors to commit capital to Nigeria.