Governor of the Central Bank of Nigeria, Olayemi Cardoso, has canvassed stronger economic ties with the Middle East and the Nigerian diaspora community in the region.

Speaking during a meeting with the assistant governor for monetary affairs, Saudi Arabia Central Bank, Talal Al-Humond, on the sideline of the just-concluded inaugural Conference on Emerging Markets Economies organised by the ministry of finance, Saudi Arabia, and the International Monetary Fund (IMF) regional office in Riyadh, Cardoso said there were lessons to be learned from Saudi Arabia in terms of infrastructural development and tourism.

According to a statement that was issued by the CBN on Monday, Cardoso said Saudi Arabia’s dedication to diversifying its economy through innovative environmental projects, large-scale transformation, and tourism investment is essential for development.

Cardoso also reaffirmed his dedication to collaborating with the Nigerian Diaspora community in the Middle East to improve remittance flows and strengthen Nigeria’s financial sector. He stated that the Central Bank of Nigeria (CBN) will continue enhancing macroeconomic fundamentals to establish an enabling environment that will facilitate the growth of the private sector and the generation of high-quality jobs for Nigerians.

Responding, Talal Al-Humond assured  Cardoso that the Saudi Central Bank will work with the CBN to ensure the attainment of mutually beneficial objectives.

Meanwhile, during a panel discussion moderated by the director, middle east and central Asia department, IMF, Jihad Azour, at the conference, Mr. Cardoso cited reforms in the financial markets that addressed distortions in the Nigerian foreign exchange market, which had previously experienced a gap of up to 60 per cent between the official and parallel market exchange rates.

He noted that due to consistent policy direction, improved market confidence, and enhanced transparency in forex trading, the gap has significantly narrowed to approximately 4-5 per cent.

Governor Cardoso also highlighted the adoption of an electronic matching system to improve transparency in the market and the introduction of a foreign exchange code of ethics, which all Nigerian banks signed to ensure adherence to market rules.

As a result of these measures, he reported that the country’s foreign reserves had exceeded $40 billion, marking the highest level in nearly three years.

 

He acknowledged that Nigeria had faced significant economic challenges, including capital flow exits, multiple exchange rate regimes, currency depreciation, high inflation, and a backlog of foreign exchange transactions, which led to a loss of confidence in the country’s currency.

 

Upon assuming office, he stated that his team prioritised restoring confidence in the market by addressing the backlog of foreign exchange transactions and demonstrating a commitment to economic stability.

 

Cardoso emphasised that Nigeria implemented a tight monetary policy stance to tackle inflation and restore macroeconomic discipline. Over the past year, he explained that the Bank raised interest rates by 850 basis points and shifted away from quasi-fiscal interventions that had distorted the economy. He stressed that Nigeria’s approach had remained firmly rooted in orthodox monetary policies, a stance that was consistently communicated to market participants.

 

Another significant reform, he noted, was the removal of the fuel subsidy, which, along with multiple exchange rate inefficiencies, had cost the country approximately six per cent of its Gross Domestic Product (GDP) annually. He acknowledged that previous administrations had lacked the political will to remove the subsidy, but its elimination has had a profound positive impact on Nigeria’s fiscal outlook.

 

On financial sector reforms, he explained that the CBN had mandated banks to recapitalise to strengthen the financial system and build buffers to withstand future economic shocks. He noted that these measures had so far proven successful in bolstering the sector.

 

Addressing the broader global economic climate, he emphasised the importance of tailoring policy decisions to each economy’s unique needs. He recounted how Nigeria continued to tighten monetary policy even when global trends suggested otherwise. Despite the initial skepticism , he noted that a year later, many financial practitioners and international colleagues recognised that Nigeria had made the right decisions based on its specific economic conditions.

 

Speaking on the actions required to enhance financial inclusion and the role of digitalisation and financial technology in mitigating potential risks, the governor referenced Nigeria’s experience, where the financial inclusion rate currently stands at 74 per cent.

 

He stressed the critical need to expand this aggressively to ensure that economic growth benefits all segments of society. As the economy rebounds, he emphasised reducing disparities and ensuring broad-based financial access.

 

Highlighting digitalisation as a key driver in advancing financial inclusion, he stated that expanding mobile money services, leveraging technology and prioritising gender-focused initiatives due to the positive economic impact of empowering women across the African continent would significantly close the financial access gap, particularly for underserved populations.

 

He reaffirmed the CBN’s commitment to maintaining macroeconomic stability, sustaining policy consistency, and ensuring long-term resilience for the Nigerian economy.

 

The two-day event, which served as a key platform for addressing structural changes in the global economy and their impact on emerging markets, brought together policymakers and economic experts from across emerging markets. It was held in Al Ula, Saudi Arabia, from February 16 to 17, 2025.

The Federal Government has congratulated Donald Trump on his inauguration as the 47th President of the United States of America.

The message was conveyed in a statement issued by the spokesperson for the Ministry of Foreign Affairs, Kimiebi Ebienfa, on Tuesday.

Nigeria stressed the strong and historic ties between the two nations, highlighting their shared cooperation in areas such as the promotion of good governance, sustainable development, and the fight against terrorism and violent extremism.

The statement expressed Nigeria’s commitment to strengthening its strategic partnership with the United States under President Trump’s leadership, to advance the interests and well-being of both nations’ citizens.

The Federal Government said Nigeria looked forward to continued collaboration with the US in addressing global challenges and fostering mutual growth.

The statement read, “Nigeria and the United States of America have enjoyed cooperation in diverse areas of mutual interest, especially in the promotion of good governance, sustainable development, and the fight against terrorism and violent extremism.

“Nigeria, therefore, looks forward to further strengthening our historic, strong, and vibrant strategic partnership for the benefit of all our people.”

Trump was sworn in as the 47th president of the United States on Monday during a historic inauguration ceremony held inside the Capitol Rotunda due to inclement weather.

Meanwhile, Nigerians in the United States were on Tuesday reassured that large-scale deportation efforts are unlikely to materialise, even as immigration policies are expected to become stricter.

Fears of mass deportations under Donald Trump’s administration may be overblown, according to experts who cite constitutional and logistical challenges as significant barriers.

During his speech, Trump touched on issues including immigration, border control, economic reforms, and energy policies.

Among the first executive orders signed by Trump was an attempt to end birthright citizenship, a right enshrined in the US Constitution and upheld by the Supreme Court for over 125 years.

Trump also declared a national emergency at the southern border, announcing measures to combat illegal immigration and pledging to halt all illegal entry.

However, the Chairman Emeritus of Nigerians in Diaspora Organisation Americas and Director of the African Diaspora Congress, Obed Monago, who spoke to our correspondent reassured Nigerians in the US that fears of mass deportations under the Trump administration are unfounded.

Monago cited constitutional and logistical hurdles as key factors preventing such large-scale actions.

According to Monago, the US Constitution does not allow mass deportations through executive orders, as such measures typically require Congressional approval.

He stressed the significant resources needed for such an initiative, resources that have not been allocated. Additionally, opposition from many border towns and counties further complicates the feasibility of implementing mass deportations.

Monago believes the Trump administration’s deportation threats are likely to remain unfulfilled campaign promises, though he acknowledges that US immigration policies are likely to become stricter.

“I don’t envision deportations of that magnitude to take place, so, the level of fear and anxiety should be minimal.

“For one, the constitution of the United States does not empower such actions through executive orders, but usually, through the act of the congress. So, expect some checks and balances.

“The deportation at the magnitude he is talking about can only be taken at the face value, because it is not feasible, given the amount of resources it will require. Such resources have not been appropriated for.

“The Trump administration will also need the cooperation of border towns and counties, some of which have out-rightly and openly kicked against such massive deportation initiatives.

“So, in the final analysis, Trump’s deportation threat can only be taken simply as an unfilled campaign promise. But, do not discount the fact that immigration policies of the United States will change,” he explained.

With the Republican Party in control of both the legislative and executive branches, more drastic measures are anticipated.

However, Monago argued that deporting millions of people is unrealistic. He noted that individuals with criminal records are the most likely to face heightened scrutiny under any new policies.

Also, a Nigerian technocrat living in Minnesota, Chief Azuka Aghenu, raised concerns about how specific policies could impact Nigerians, particularly undocumented immigrants and those holding visitor or business visas.

Aghenu advised Nigerians to avoid applying for employment illegally, engaging in unlawful activities, or driving under the influence, as these actions could attract the attention of immigration authorities.

He also warned that Nigerians traveling to the US to give birth for the purpose of securing citizenship for their children may face stricter enforcement under the administration’s policies.

“Two policies of Trump would affect Nigerians; those Nigerians without proper documentation residing in the US and those with visitors or business visas.

“If Nigerians in the US have immigration issues, they must not apply for employment, get drunk, or drive around.

“Those Nigerians that have plans of coming to the US to give birth to their children all in the name of citizenship, the policy would affect them,” he stated.

Additionally, Aghenu highlighted another area of concern: rising medication costs under new executive actions.

“One of executive actions that will affect Nigerian living in the USA will be on medication drug cost for those on Medicare and Medicaid, the lowered prices for drug cost will go up exponentially,” he noted.

A Nigerian resident in the US, who spoke on condition of anonymity, raised concerns about how specific policies could impact Nigerians, particularly undocumented immigrants and those holding visitor or business visas.

He advised Nigerians to avoid applying for employment illegally, engaging in unlawful activities, or driving under the influence, as these actions could attract the attention of immigration authorities.

The source also warned that Nigerians travelling to the US to give birth to secure citizenship for their children may face stricter enforcement under the administration’s policies.

“Two policies of Trump would affect Nigerians; those Nigerians without proper documentation residing in the US and those with visitors or business visas.

“If Nigerians in the US have immigration issues, they must not apply for employment, get drunk, or drive around.

“Those Nigerians that have plans of coming to the US to give birth to their children all in the name of citizenship, the policy would affect them,” the source stated.

Additionally, the source highlighted another area of concern: rising medication costs under new executive actions.

“One of the executive actions that will affect Nigerian living in the USA will be on medication drug cost for those on Medicare and Medicaid, the lowered prices for drug cost will go up exponentially,” he noted.

Furthermore, a retired ambassador, Rasheed Akinkuolie, advised Nigerians abroad to have a clear plan for their future, particularly for retirement and urged them to invest prudently in Nigeria.

Akinkuolie emphasised the importance of building a sustainable life in their home country and adhering to cultural values in relationships.

“Nigerians leaving the country should think twice and weigh the options and opportunities available to them in Nigeria. There are good opportunities in Nigeria, for those who can dare and endure.

“The Nigerians living abroad should have a plan for the future, especially plan for old age when they can no longer work. They will not like to face the indignity of ending up in old people’s homes.

“The trend is that many people, especially the elderly are returning home to settle down.

“The younger people working abroad should be prudent with their earnings, invest wisely in Nigeria and avoid being defrauded. Nigerian couples should follow the excellent examples of Indians, who do not resort to extreme violence in settling their differences. There should be adherence to African culture and traditions in relationships,” he stated.

Also, a research professor at the Nigerian Institute of International Affairs, Prof. Femi Otubanjo said Donald Trump’s threat of mass deportation was due to the perception among some white Americans of being under siege due to immigration.

According to Otubanjo, the growing influx of non-white immigrants is perceived as one that could alter America’s political balance, which has fueled Trump’s rhetoric and policies.

In an interview with The TheNigerian, Otubanjo described Trump as a “racist” and an “extreme rightist” who aligns with the interests of Christian nationalists and far-right groups.

Otubanjo noted that Trump’s stance on immigration is rooted in a broader fear among white Americans of losing political and cultural dominance.

“He (Trump) believes America has decayed because of the inclusion of foreigners. This ties into fears that immigrants might shift the political balance in favour of non-whites,” Otubanjo said.

He explained that Trump’s administration targeted individuals with incomplete or inaccurate immigration documents, leading to a higher risk of deportation.

“Many people who overstayed their visitor visas or converted them into long-term stays are at greater risk. The policy also aims to eliminate automatic citizenship for children born in America to non-citizens,” he added.

Democrat states sue Trump

Meanwhile, Democrat-led states and civil rights groups on Tuesday filed lawsuits challenging Trump’s executive order that seeks to end birthright citizenship in the United States.

The order, issued shortly after Trump took office, denies US citizenship to children born in the country to mothers who are undocumented or temporary visa holders, and whose fathers are not citizens or lawful permanent residents.

A coalition of 18 states, along with the District of Columbia and the city of San Francisco, filed a lawsuit in federal court in Boston, arguing that the order violates the 14th Amendment’s Citizenship Clause.

This clause affirms that anyone born in the United States is a citizen.

“State attorneys general have been preparing for illegal actions like this one, and today’s immediate lawsuit sends a clear message to the Trump administration that we will stand up for our residents and their basic constitutional rights,” New Jersey Attorney General Matthew Platkin said in a statement, as reported by Reuters.

The lawsuits reference the US Supreme Court’s 1898 decision in United States v. Wong Kim Ark, which established that children born in the United States to non-citizen parents are entitled to citizenship.

Massachusetts Attorney General Andrea Joy Campbell criticized the order, stating it could strip citizenship from more than 150,000 children born in the US each year.

“President Trump does not have the authority to take away constitutional rights,” she said in a statement.

Among the plaintiffs is a Massachusetts woman with temporary protected status who is due to give birth in March.

Additional lawsuits were filed in New Hampshire, with cases likely to be reviewed by the 1st US Circuit Court of Appeals. This court, based in Boston, is notable for having judges appointed exclusively by Democratic presidents.

In addition to the birthright citizenship order, other lawsuits have been filed against Trump’s executive actions, including one that eases the firing of federal employees and another challenging the Elon Musk-led “Department of Government Efficiency.”

The White House has not commented on the lawsuits.