The Central Bank of Nigeria (CBN) has defended its monetary and foreign exchange reforms before the Senate, insisting that the policies have strengthened macroeconomic stability, restored investor confidence, and placed the economy on a firmer footing, even as lawmakers raised concerns over bank lending, inflation, recapitalisation and the apex bank’s financial operations.
At a statutory engagement with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday, lawmakers questioned the CBN on the impact of its banking reforms on credit to the real sector, the outlook for inflation, foreign exchange management, rising Open Market Operations (OMO) liabilities, excessive bank charges, and consumer protection.
The session, chaired by Mukhail Adetokunbo Abiru, was held in line with the CBN Act, which requires the governor to brief the National Assembly twice yearly. It was the committee’s first engagement with the apex bank in 2026.
Leading the delegation, CBN Governor Olayemi Cardoso, accompanied by the bank’s four deputy governors and other senior officials, said reforms implemented over the past three years had consolidated macroeconomic gains despite persistent global uncertainties.
“I am pleased to report that the first half of 2026 witnessed the consolidation of many of those gains,” Cardoso told lawmakers, citing improvements in inflation, exchange rate stability, external reserves and banking sector reforms.
He said although headline inflation rose temporarily from 15.06 per cent in February to 15.93 per cent in May due to geopolitical tensions in the Middle East, it moderated to 15.91 per cent in June, demonstrating the effectiveness of the bank’s monetary policy.
Cardoso also said foreign exchange reforms had improved transparency, reduced speculative activities, and strengthened investor confidence.
According to him, the average exchange rate appreciated to N1,375.40 per dollar in the first half of 2026, while diaspora remittances through official channels increased from about $200 million to more than $600 million monthly, with the CBN targeting $1 billion monthly by the end of the year.
He added that Nigeria’s external reserves had climbed to $52.73 billion as of July 9, 2026.
On the banking sector, the CBN governor disclosed that banks raised N4.65 trillion in fresh capital under the recapitalisation programme, with 72.55 per cent coming from domestic investors and 27.45 per cent from foreign investors.
Cardoso said 33 banks had met the new capital requirements, while discussions were ongoing with the few institutions yet to comply in order to protect depositors and maintain financial system stability.
- Media Report