The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has disclosed that 32 banks have met the new capital requirements under the ongoing recapitalisation programme ahead of the March 31, 2026 deadline.
Cardoso made this known on Thursday in Abuja at the Monetary Policy Forum, stating, “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, positioning it to effectively mobilise long-term capital, support productive investment, and play its critical role in enabling the transition towards a $1.0tn economy.”
He added that the forum, the first for 2026, reflects the apex bank’s commitment to “engage its critical stakeholders in open communication, inclusive consultation, and collaborative monetary policymaking.”
The CBN governor described the forum’s theme as timely, noting that Nigeria’s macroeconomic stability “is a shared responsibility” involving monetary and fiscal authorities, financial institutions, and the private sector.
Cardoso explained that the reforms were necessitated by weak macroeconomic conditions inherited in 2023, when inflation surged to 29.9 per cent in January 2024 due to food prices, exchange rate pressures, and supply constraints. He noted that monetary financing had weakened policy credibility, with Ways and Means advances rising to N26.95tn by May 2023, while the foreign exchange market faced over $7bn backlog, a parallel market premium above 60 per cent, and net reserves dropping to $3.99bn at the end of 2023.
“These challenges undermined policy transmission, investor confidence, and the credibility of the apex bank,” he said.
According to him, reforms introduced by the CBN have restored discipline, with Ways and Means financing declining to N3.51tn in December 2024 and further to N2.84tn by January 2026. “This action restored compliance with the law, strengthened central bank independence, signalled to markets about the Bank’s commitment to orthodoxy and transparency, and sent a clear message that the era of fiscal dominance had come to an end,” Cardoso said.
He also disclosed that the apex bank adopted a tight monetary policy stance in 2024, raising rates by 875 basis points from 18.75 per cent to 27.50 per cent to curb inflation, before easing to 27.0 per cent in September 2025 and 26.5 per cent in February 2026.
“Our staff counterfactual simulations revealed that, without these firm and coordinated actions, inflation would have been significantly higher, and inflation expectations would have become significantly de-anchored,” he said.
On foreign exchange reforms, Cardoso said the CBN cleared over $7bn backlog, introduced a willing-buyer, willing-seller system, and strengthened market transparency. Diaspora remittances also rose from about $200m to $600m monthly, with a target of $1bn per month by 2026.
He noted that the reforms narrowed the parallel market premium to below 2 per cent and boosted reserves, which rose from $38.34bn in February 2025 to $50.12bn in February 2026, while net reserves increased to $34.80bn by the end of 2025. Nigeria also recorded a $4.59bn balance of payments surplus in the third quarter of 2025.
Cardoso said the reforms earned global recognition, with Fitch and Moody’s upgrading Nigeria’s ratings in 2025 and the country exiting the FATF grey list. The International Monetary Fund also commended the reforms for restoring transparency and discipline.
He further highlighted banking sector measures, including new capital requirements, a risk-based framework, stricter insider lending rules, and enhanced supervisory systems such as the Early Warning System.
In the payments space, he cited migration to ISO 20022, improved fraud management, and collaboration through the Nigeria Electronic Fraud Forum, alongside expanded consumer protection initiatives.
According to Cardoso, inflation declined from 34.8 per cent in December 2024 to 15.06 per cent in February 2026, while exchange rate stability and foreign exchange liquidity improved. He added that Nigerians can now use their cards for international transactions, with investor confidence supported by stronger reserves and increased inflows.
Despite the progress, he warned of risks including geopolitical tensions, oil price volatility, food supply constraints, and infrastructure gaps.
However, he expressed optimism about economic growth, stating, “Nigeria’s economy is projected to grow by 4.49 per cent, supported by reforms, improved policy coordination, and a market-driven foreign exchange regime. The most challenging phase of macroeconomic adjustment is now behind us, with solid foundations laid for sustained stability.”
He reaffirmed the CBN’s commitment to transparency, discipline, and stakeholder engagement.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also commended the monetary policy team, noting that sustained engagement has strengthened outcomes and earned global recognition. He emphasised that macroeconomic stability requires collaboration and praised ongoing foreign exchange reforms.
In his remarks, the CBN Deputy Governor for Economic Policy, Muhammad Abdullahi, described the Monetary Policy Forum as a key platform for stakeholder engagement, stressing that consistent dialogue is essential for effective and responsive policymaking.
Earlier, the CBN disclosed that Nigerian banks attracted N4.61tn in new capital under the recapitalisation programme, with 27 per cent sourced from foreign investors, positioning the sector to absorb shocks, support growth, and expand regionally.
