Olayemi Cardoso, the Governor of the Central Bank of Nigeria, on Wednesday, said the apex bank remains on course to achieve single-digit inflation over the medium term, as a combination of monetary and foreign exchange reforms continues to strengthen macroeconomic stability, lift Nigeria’s external reserves to $52.73 billion and restore investor confidence.
Cardoso said the reforms had also supported the appreciation of the naira, boosted official diaspora remittances and consolidated gains recorded in 2025 despite persistent global economic headwinds.
The CBN governor disclosed this while briefing the Senate Committee on Banking, Insurance and Other Financial Institutions during a statutory engagement required under the CBN Act, which mandates the governor to brief the National Assembly twice yearly.
The session, chaired by Tokunbo Abiru, the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, marked the Committee’s first statutory engagement with the apex bank in 2026.
Accompanied by Deputy Governors Lami Uyiguda, Philip Ikeazor, Muhammad Sani Abdullahi and Emem Usoro, alongside Directors of key departments, Cardoso said the first half of 2026 had witnessed further consolidation of the macroeconomic gains achieved through reforms implemented over the last three years.
Cardoso said, “When I last appeared before this distinguished committee in December 2025, I reported encouraging progress in inflation moderation, foreign exchange market stabilisation, external reserves accumulation, reform of market infrastructure and significant advances in the banking sector recapitalisation programme.
“I am pleased to report that the first half of 2026 witnessed the consolidation of many of those gains.”
He said that although geopolitical tensions, trade fragmentation and supply chain disruptions continued to create uncertainty in the global economy, Nigeria had remained resilient, with improving business conditions and strengthening private sector confidence.
According to him, headline inflation resumed its downward trajectory after a temporary increase triggered by the Middle East conflict.
Cardoso said inflation rose from 15.06% in February to 15.93% in May before easing slightly to 15.91% in June.
He said, “This outcome demonstrates the effectiveness of our monetary policy stance in containing second-round inflationary pressures and anchoring inflation expectations.
“We remain fully committed to restoring price stability and achieving single-digit inflation over the medium term.”
On developments in the foreign exchange market, Cardoso said reforms introduced by the apex bank had significantly improved transparency, liquidity and market confidence.
He listed the implementation of the fourth edition of the Foreign Exchange Manual, the Nigeria Foreign Exchange Code and the Electronic Foreign Exchange Matching System among the reforms that had reduced speculative activities and strengthened investor confidence.
According to him, the average exchange rate appreciated to N1,375.40 per dollar during the first half of 2026.
He further disclosed that diaspora remittances through official channels had increased from about $200 million to over $600 million monthly, adding that the apex bank was targeting $1 billion monthly by the end of the year.
Cardoso also announced that Nigeria’s external reserves had risen to $52.73 billion as of July 9, 2026.
On banking sector reforms, he described the recapitalisation programme as one of the most successful in the country’s history.
He said banks raised N4.65 trillion in fresh capital, with 72.55% coming from domestic investors and 27.45% from foreign investors.
According to him, 33 banks have met the revised capital requirements, while discussions are continuing with the few institutions yet to comply to protect depositors and preserve financial stability.
Cardoso said, “With recapitalisation now completed, our focus has shifted towards ensuring that stronger capital translates into improved governance, enhanced risk management and support for productive economic activities.”
He also highlighted the rollout of the Payments System Vision 2028, improved sovereign credit ratings by Fitch, Moody’s and S&P, stronger coordination between monetary and fiscal authorities and continued reforms aimed at strengthening financial system stability.
Cardoso expressed optimism that inflation would continue to moderate in the second half of the year as the CBN sustains reforms in foreign exchange management, post-recapitalisation supervision, inflation targeting, digital payment systems and financial system resilience.
Earlier, Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, acknowledged improvements in macroeconomic indicators since the committee’s last engagement with the CBN in December 2025 but stressed that the gains must be reflected in the lives of Nigerians.
Abiru said, “The Nigerian economy has continued to demonstrate remarkable resilience in the face of an increasingly uncertain global environment.”
He noted that inflation declined to 15.06% in February, leading the Monetary Policy Committee to reduce the Monetary Policy Rate from 27% to 26.5%, before rising again to 15.93% in May following external shocks.
While commending the CBN for maintaining exchange rate stability, improving transparency in the foreign exchange market and successfully implementing the banking recapitalisation programme, Abiru said the benefits of stronger banks should extend beyond improved balance sheets.
He said, “Recapitalisation should not become an end in itself. Ultimately, the true measure of a stronger banking system lies not merely in larger balance sheets but in its capacity to mobilise savings efficiently and channel affordable credit to productive sectors of the economy.”
He said agriculture, manufacturing, infrastructure, technology and small and medium enterprises should be the major beneficiaries of the increased capital base of banks.
The Committee chairman, however, expressed concern over reports suggesting that private sector credit had moderated despite banks raising unprecedented capital.
He said, “The expectation of businesses and indeed the Nigerian people is that stronger capital positions should naturally support increased lending to the economy rather than concentration in risk-free assets or short-term financial instruments.”
Abiru said senators also expected explanations on the few banks that failed to meet recapitalisation requirements, excessive bank charges, failed electronic transactions, consumer complaints, cybersecurity, circulation of quality naira notes and financial inclusion.
The committee further requested the CBN’s assessment of inflation, the conditions required before monetary easing could resume and measures to improve access to affordable long-term credit for productive sectors.
Lawmakers also sought clarification on the apex bank’s proposed regulatory framework for financial holding companies, particularly the proposed capital requirements, restrictions on shared services and implementation timelines.
While expressing support for stronger regulation, Abiru cautioned that reforms should not impose unnecessary compliance costs or undermine the competitiveness of Nigerian financial institutions.
The Committee equally examined the CBN’s 2025 audited financial statements, seeking explanations on the sharp increase in liquidity sterilisation through Open Market Operations (OMO), with outstanding OMO bills reportedly rising from N24.3 trillion in 2024 to N48.7 trillion in 2025.
Lawmakers also requested clarification on the associated liquidity management costs, increased operating expenses, monetary and financial stability expenditures, and the treatment of the CBN’s operating surplus through the offset of Ways and Means advances owed by the Federal Government instead of cash remittances.
He added, “Our constitutional responsibility requires that we examine issues capable of affecting financial sector resilience and the broader Nigerian economy.”
Following the presentations, Abiru announced that the committee would proceed into a closed-door session to enable senators to engage Cardoso and his management team on the issues raised.
