Olayemi Cardoso, the governor of the Central Bank of Nigeria, claims that after two years of extensive monetary changes, the nation has reached a more stable period and that Nigeria’s economy is clearly improving.
At the 60th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria, Cardoso spoke to bankers and financial leaders in Lagos and said that Nigeria had “turned a decisive corner” in its reform process.
He said that lower inflation, a more stable foreign exchange market, and more investor confidence all indicate that the economy is starting to stabilize.
The Governor claims that the Bank’s adoption of traditional monetary policy and stricter regulatory control is progressively resolving economic distortions that have long plagued the economy.
In November 2024, inflation was 34.6%; by October 2025, it was only 16.05%. Additionally, after hovering near 22% earlier in the year, food inflation has decreased to 13.1%. According to Cardoso, the CBN would keep modifying its policy tools in an effort to lower inflation to single-digit levels.
His review mostly concentrated on changes in the foreign currency market. Cardoso affirmed that the CBN had paid off the multibillion-dollar foreign exchange backlog that the current administration inherited. This amount was originally thought to be above seven billion dollars. He pointed out that international airlines, manufacturers, and portfolio investors now feel more confident after the arrears were settled.
He credited changes like the Nigerian FX Market Conduct Code, the Electronic Foreign Exchange Management System, and the harmonization of exchange rates for bringing stability back.
According to Cardoso, these actions have decreased opacity, deterred arbitrage, and made it possible for the naira to move within a more narrow range. Now, the gap between official and parallel market rates is less than 2%, which is a dramatic improvement from the time when it was more than 60%.
Investor inflows have also been boosted by improved stability; in the first 10 months of 2025, they totaled 20.98 billion dollars, a 70% increase over the entire year 2024.
Cardoso emphasized that Nigeria’s external reserves have recovered and are now at 46.7 billion dollars, the greatest level in over seven years, with more than 10 months’ worth of import coverage. He emphasized that rather than new borrowing, stronger FX liquidity, non-oil exports, and higher diaspora remittances are driving up reserves.
Regarding the financial system, he stated that bank recapitalization is going nicely. Sixteen institutions have reached or exceeded the revised capital criteria before the deadline of March 31, 2026, while twenty-seven banks have already raised additional cash.
He continued by saying that stress tests conducted this year verify that the financial system is still generally sound. Additionally, the Bank has performed a thorough examination of the cash distribution network, updated regulations for branch closures, and tightened control of ATMs and POS agents.
Cardoso called Nigeria’s removal from the Financial Action Task Force’s gray list a noteworthy accomplishment. He clarified that nations on the list frequently experience a 7.6% decrease in capital inflows during the first year. He said that Nigeria’s withdrawal had increased international trust in the nation’s financial behavior and reduced compliance pressure on correspondent banks.
He also highlighted the fast expansion of the fintech industry and digital payments. Over 12 million contactless cards have been distributed, over 40 innovators are currently housed in the regulatory sandbox, and switching businesses’ interoperability has improved. Cardoso stated that the CBN will keep encouraging innovation, but only in a way that protects consumers and the stability of the economy.
The Governor pointed out that international rating agencies have started to recognize Nigeria’s progress toward reform. Moody’s moved Nigeria from Caa1 to B3, S&P changed the outlook from stable to positive, while Fitch upgraded the country from B- to B with a stable outlook.
Cardoso listed several top priorities for 2026, such as bolstering banks’ resilience, enhancing price stability through a more sophisticated inflation-targeting framework, growing the digital payments network, improving oversight of fintech operators, modernizing internal CBN procedures, and forging closer ties both domestically and internationally.
With the help of a flexible exchange-rate regime, increased non-oil exports, a developing services sector, and stronger reserves, he concluded his speech with confidence, stating that Nigeria is now better equipped to withstand external shocks.
