The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that 32 banks have already met the revised minimum capital requirements under the ongoing banking recapitalisation programme, hitting a significant milestone in efforts to strengthen the nation’s financial system.
Speaking at the Monetary Policy Forum in Abuja on Thursday, Cardoso described the progress as “commendable” and said it positions Nigeria’s banking sector to better support long-term investment and sustainable economic growth.
“The banking sector recapitalisation programme has recorded commendable progress, with 32 banks having already met the revised capital requirements. This achievement has significantly strengthened the resilience and capacity of the Nigerian banking system, enabling it to mobilise long-term capital, support productive investment, and play a critical role in Nigeria’s journey toward becoming a $1 trillion economy,” Cardoso said.
He emphasized that the recapitalisation is part of broader reforms aimed at improving governance and risk management across the sector. Key measures include a risk-based capital framework, phased exit from regulatory forbearance, stricter enforcement of insider lending rules, and limitations on credit to major non-performing borrowers.
The CBN governor also highlighted enhancements in supervisory capacity, including the adoption of digital early warning systems, improved off-site surveillance, and stronger cross-border supervision for Nigerian banks operating internationally.
Inflation and Monetary Policy
Cardoso noted that disciplined monetary tightening has helped reverse inflation trends, with headline inflation dropping sharply from 34.8% in December 2024 to 15.06% in February 2026. He attributed the improvement to aggressive interest rate hikes totaling 875 basis points in 2024, followed by a gradual easing to a policy rate of 26.5% in February 2026.
Foreign Exchange Reforms and Diaspora Remittances
On the foreign exchange front, the CBN cleared over $7 billion in verified FX backlogs and introduced a rule-based willing-buyer willing-seller system to enhance transparency. These reforms, along with tighter reporting standards and improved market surveillance, reduced the parallel market premium to below 2%.
Diaspora remittances have also surged, rising from about $200 million to $600 million monthly, with a target of $1 billion per month by the end of 2026. The CBN credited the growth to better settlement systems and regulatory oversight.
Strengthened Reserves and Policy Credibility
Gross external reserves rose to $50.12 billion in February 2026, up from $38.34 billion a year earlier, while net reserves climbed from $3.99 billion at the end of 2023 to $34.80 billion in 2025. Cardoso said improved reserve management, diversification strategies including gold integration, and stronger external asset management frameworks drove this growth.
He also highlighted reforms in fiscal-monetary coordination, noting a sharp reduction in Ways and Means financing from N26.95 trillion in May 2023 to N2.84 trillion by January 2026, restoring central bank independence and ending fiscal dominance. These reforms have earned Nigeria sovereign rating upgrades and recognition from the IMF.
Outlook
Looking forward, Cardoso said the next phase of reforms will focus on consolidating gains by targeting single-digit inflation, sustaining exchange rate stability, and strengthening reserves. He projected domestic growth of 4.49% in 2026, cautioning that global risks such as geopolitical tensions and oil price volatility remain.
“The most challenging phase of macroeconomic adjustment is now behind us. Continued collaboration across all stakeholders is critical to sustaining the gains,” Cardoso said.
The CBN earlier reported that Nigerian banks raised a total of N4.61 trillion in fresh capital under the recapitalisation programme, reflecting strong investor confidence and increased foreign participation.
