Nigeria’s economy is showing renewed stability following two years of sweeping monetary reforms, as the Governor of the Central Bank of Nigeria, Olayemi Cardoso, announced that the country has entered a more predictable phase of recovery. Speaking at the 60th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria in Lagos, Cardoso said Nigeria has “turned a decisive corner,” driven by a steady decline in inflation, a more stable foreign exchange market, and rising investor confidence.....KINDLY READ THE FULL STORY HERE▶

According to Nivo News, the CBN Governor explained that the Bank’s return to orthodox monetary policy and stronger regulatory enforcement is helping to correct long-standing structural distortions. Inflation, which peaked at 34.6 per cent in November 2024, has eased significantly to 16.05 per cent as of October 2025. Food inflation has also dropped to 13.12 per cent after nearing 22 per cent earlier in the year. Cardoso reaffirmed the Bank’s commitment to tightening policy tools to gradually push inflation towards single digits.

He offered a detailed assessment of the foreign exchange market, confirming that the CBN has cleared the multi-billion-dollar FX backlog inherited by the current administration, previously estimated at more than seven billion dollars. He said the settlement of these arrears has restored confidence among foreign airlines, manufacturers, and portfolio investors who had been constrained by delayed FX access.

Cardoso attributed the market’s stability to key reforms, including the unification of exchange rates, the rollout of the Electronic Foreign Exchange Management System, and the adoption of the Nigerian FX Market Conduct Code. These measures, he noted, have curbed arbitrage opportunities, reduced opacity, and kept the naira trading within a tighter range. The gap between official and parallel market rates has now shrunk to below 2 per cent, a sharp contrast to the period when it exceeded 60 per cent.

The improved climate has also spurred investor inflows, which reached 20.98 billion dollars in the first ten months of 2025—a 70 per cent surge over total inflows recorded in 2024. Cardoso further highlighted a significant boost in Nigeria’s external reserves, which now stand at 46.7 billion dollars, the highest level in nearly seven years, providing more than ten months of import cover. He emphasised that the growth is driven by stronger FX liquidity, expanding non-oil exports, and rising diaspora remittances rather than new borrowings.

Cardoso said the ongoing banking sector recapitalisation is progressing smoothly, with twenty-seven banks already securing new funds and sixteen meeting or exceeding the revised capital requirements ahead of the March 31, 2026 deadline. Stress tests conducted this year indicate that Nigeria’s financial system remains resilient. He also disclosed that the CBN has enhanced oversight of ATMs and POS terminals, updated policies guiding branch closures, and completed a comprehensive review of the national cash distribution framework.

The Governor described Nigeria’s removal from the Financial Action Task Force grey list as a major achievement, noting that countries on the list typically suffer capital inflow reductions of up to 7.6 per cent in the first year. Nigeria’s exit, he said, has eased compliance pressures on correspondent banks and strengthened global confidence in the country’s financial integrity.

He pointed to rapid growth in digital payments and the fintech ecosystem, revealing that more than 12 million contactless cards have been issued while over 40 innovators are now active in the regulatory sandbox. Cardoso said the CBN will continue to encourage technological innovation, provided it aligns with consumer-protection standards and broader financial stability.

Touching on international sentiment, he noted that global rating agencies have begun to acknowledge Nigeria’s reform progress. Fitch recently upgraded the country’s rating from B- to B with a stable outlook, Moody’s raised Nigeria from Caa1 to B3, and S&P revised its outlook from stable to positive.

Looking ahead to 2026, Cardoso outlined priorities including strengthening banks’ shock resilience, refining the inflation-targeting framework, expanding digital payment infrastructure, deepening oversight of fintech operators, modernising CBN internal processes, and building stronger domestic and global partnerships. He concluded with optimism, stating that Nigeria is now better prepared to withstand external pressures, backed by a more flexible exchange-rate system, expanding non-oil exports, growing service industries, and firmer external reserves.