The Senate on Thursday commended the Central Bank of Nigeria (CBN) for what it described as a remarkable turnaround in key macroeconomic indicators, including sustained disinflation, exchange rate stability, rising external reserves, and renewed investor confidence.
Lawmakers also welcomed the Bank’s positive projections for 2026, noting that Nigeria’s economic fundamentals have strengthened significantly under ongoing monetary and structural reforms.
The commendation came during the second statutory engagement of the year between the Senate Committee on Banking, Insurance and Other Financial Institutions and the apex bank, held in Abuja.
Chairman of the committee, Senator Mukhail Adetokunbo Abiru (APC-Lagos East), in his opening remarks, before the meeting went into closed-door session, said recent economic data show that the CBN’s reforms are yielding tangible results, with inflation declining steadily from its peak and the naira maintaining stability across markets.
Abiru praised the CBN for steering inflation down to about 16 per cent as of October 2025, a sharp drop from the pressures of the past two years.
He said the stability in the foreign exchange market, convergence of rates, and improved liquidity have strengthened business planning and boosted investor confidence.
He also highlighted the steady growth in external reserves, now above $46.7 billion, which he said provides “stronger buffers against external shocks and reinforces Nigeria’s creditworthiness.”
The Senator further commended the apex bank for its role in securing improved sovereign ratings from global agencies Fitch and S&P.
On monetary policy, Abiru noted the CBN’s decision to retain the Monetary Policy Rate (MPR) at 27 per cent while adjusting the standing facility corridor, saying it reflects a delicate balance between anchoring inflation expectations and supporting credit expansion.
But the Committee Chairman also raised issues requiring clarification, including the 2026 timeline for banking sector recapitalisation, the clearing of outstanding FX forwards, and lingering concerns about mutilated naira notes, excessive bank charges, cyber risks in the digital finance space, and the controversial Auditor-General’s report on unremitted operating surplus allegedly involving N1.44 trillion.
Responding, CBN Governor Dr. Olayemi Cardoso delivered a detailed report on macroeconomic performance in the second half of 2025 and the outlook for 2026, affirming that Nigeria’s economic recovery is firm and broad-based.
Cardoso said despite global headwinds, ranging from geopolitical tensions to fluctuations in oil prices, Nigeria has “consolidated macroeconomic stability, strengthened financial markets, and improved monetary policy effectiveness.”
He stated that the Bank’s inflation-targeting transition, tighter monetary stance, and FX market reforms have restored credibility to monetary policy.
According to him, real GDP grew by 3.98 per cent in the third quarter of 2025, driven by crop production, ICT, real estate, and financial services, while the Purchasing Managers’ Index reached 56.4 points in November, its highest level in five years, indicating stronger output growth.
On inflation, Cardoso reported that headline inflation has fallen for seven consecutive months, down from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, the lowest in three years.
Food inflation, he said, has also dropped significantly to 13.12 per cent, easing pressure on household consumption and business operations.
The Governor emphasised that the benefits of the CBN’s reforms are most evident in the foreign exchange market, where stability has returned, and arbitrage opportunities have largely disappeared.
He said the gap between the official and parallel market rates has narrowed to under 2 per cent, compared to over 60 per cent a year ago.
“As of November 26, the naira traded at N1,442.92/$ at the Nigerian Foreign Exchange Market, an improvement from the first-half average.
“Foreign reserves have surged to $46.7 billion, the highest in almost seven years, while diaspora remittances have risen by 66.7 per cent to about $600 million per month,” he said.
Perhaps the most significant achievement, he noted, was the clearance of the $7 billion FX backlog, which has restored investor confidence and catalysed foreign capital inflows.
Nigeria recorded $20.98 billion in capital inflows in the first 10 months of 2025—a 70 per cent increase over the entire 2024 figure and a 428 per cent jump from 2023.
Cardoso also confirmed strong gains in the external sector, including an 85 per cent improvement in the current account balance and a dramatic narrowing of the balance of payments deficit by over 90 per cent in Q2 2025.
On the financial system, he said the banking recapitalisation programme is “firmly on track,” with 27 banks raising capital and 16 already meeting or exceeding the new thresholds ahead of the March 31, 2026, deadline. The stock market, he added, has surged by 19 per cent between June and November due to renewed investor confidence.
He also highlighted advances in digital finance, including the extension of the Payment System Vision Roadmap to 2028, the rollout of over 12 million contactless cards, the expansion of the regulatory sandbox to 40 fintechs, and progress in interoperability and cybersecurity.
Looking ahead, Cardoso declared that “the outlook for 2026 is positive.”
He projected further moderation in inflation, sustained exchange-rate stability, stronger banking-sector resilience, and continued reforms to bolster payment infrastructure, liquidity management, and prudential oversight.
The CBN, he assured the Senate, will remain vigilant amid global uncertainties but is confident that Nigeria’s strengthened economic foundations will mitigate risks and sustain recovery.
With both arms of government aligned on economic direction, the Senate expressed optimism that the reforms will deliver lasting stability, growth, and improved living standards for Nigerians
