Nigeria can no longer depend mainly on foreign capital to finance its development because global investors have become more cautious, says Yemi Cardoso, the governor of the Central Bank of Nigeria.
Mr Cardoso, on Wednesday, explained that Nigeria and other African countries must rely on their own financial resources, including pension funds, insurance assets, domestic savings and money from citizens living abroad, to drive economic growth.
The central bank governor noted this at the seventh Africa Emerging Markets Forum in Abuja. According to him, the global investment environment has changed, and countries now have to compete harder to attract capital.
“The era of abundant liquidity, chasing returns regardless of risk, is over. Investors now have more choices and less tolerance for uncertainty,” he stated.
Mr Cardoso disclosed that investors now place greater value on countries with stable policies and strong institutions, saying, “Capital increasingly flows to the promise of credibility, transparency, policy consistency, and strong institutions.”
The CBN governor urged Africa not to depend solely on attracting foreign capital to finance its development. He encouraged governments to make better use of resources already available within their own economies.
“We must mobilise more of our own resources, including pension and insurance funds, domestic savings and diaspora capital, and channel them towards productive domestic investment,” Mr Cardoso stated.
According to the National Pension Commission (PenCom), pension assets rose to about N30.7 trillion as of 30 June 2026, making them one of Nigeria’s largest pools of long-term domestic capital. Nigeria also receives significant foreign exchange from Nigerians living abroad, while successive governments have sought to attract more diaspora investment through initiatives such as diaspora bonds and other investment programmes.
Mr Cardoso pointed out that countries that want to attract investment must earn investors’ confidence through consistent policies and credible institutions.
He pointed to reforms introduced by the CBN over the past three years, including the unification of the foreign exchange market, tighter monetary policy and efforts to improve transparency in the financial system. According to him, those decisions have helped strengthen confidence in the Nigerian economy.
“We have learned one lesson. Credibility is built intentionally, one right decision after another, and strengthened through consistent action,” said the CBN boss. “Credibility is not only a central bank concern. It is a national economic asset.”
The CBN governor said Africa should focus on investments that create jobs, transfer technology and strengthen local businesses instead of investments that extract resources. He also called for greater investment in electricity, digital infrastructure, affordable internet access and digital skills to prepare young Africans for an economy increasingly driven by artificial intelligence.
