The Executive Director of the Foundation for Peace Professionals, Abdulrazaq Hamzat, has urged the Central Bank of Nigeria (CBN) to explore Nigeria’s acquisition of shareholding membership in the Bank for International Settlements.
He said the move could generate up to $20bn in cumulative economic value over 10 years.
Hamzat, a multidimensional energy economics professional, said the projected value would not come as a direct payment from the BIS but from potential improvements in Nigeria’s reserve management, foreign exchange risk management, financial stability, monetary policy and institutional influence.
‘The BIS will not give Nigeria $20bn. That is not the argument. The argument is that Nigeria could potentially create up to $20bn in economic value over a decade by improving the way we manage the assets, currency and financial system we already have,’ he said.
The BIS is owned by 63 central banks and monetary authorities whose economies account for about 95 per cent of global gross domestic product (GDP).
Hamzat said Nigeria should assess the proposal beyond potential dividends, arguing that membership could strengthen the CBN’s access to international central banking cooperation and improve its capacity to manage financial and economic shocks.
He said even marginal improvements in the management of Nigeria’s external reserves could generate significant value.
‘When you are managing tens of billions of dollars in reserves, a small improvement in risk-adjusted returns, liquidity management or asset allocation can be worth hundreds of millions of dollars,’ he said.
Hamzat also said BIS membership could strengthen Nigeria’s financial-sector resilience and monetary policy capacity, particularly amid changes in global interest rates, commodity prices, capital flows and digital finance.
However, he stressed that the $20bn projection should be subjected to independent economic modelling before being adopted as a policy estimate.
He proposed a CBN-led Nigeria-BIS Strategic Assessment Team to examine the cost and potential benefits of membership.
Hamzat also noted that no West African central bank is currently among the BIS shareholders, urging Nigeria to work with regional institutions to strengthen West Africa’s representation in global monetary governance.
He called on CBN Governor Olayemi Cardoso to initiate consultations with the BIS and commission a comprehensive cost-benefit assessment.
‘Economic stability is built before a crisis, not during one,’ Hamzat said.