The Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Thursday disclosed that 32 banks have already met the new capital requirements under the ongoing recapitalisation programme, ahead of the March 31, 2026 deadline.

Speaking in Abuja at the Monetary Policy Forum, Cardoso said, “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.”

The forum, the first edition for 2026, reflects the apex bank’s commitment to “engage its critical stakeholders in open communication, inclusive consultation, and collaborative monetary policymaking,” Cardoso added.

He noted that the forum theme was timely as Nigeria seeks to consolidate macroeconomic stability amid global and domestic challenges, stressing that stability “is a shared responsibility” involving monetary and fiscal authorities, financial institutions, and the private sector.

Cardoso explained that the reforms were driven by weak macroeconomic conditions inherited in 2023, when inflation rose to 29.9 per cent in January 2024 due to food prices, exchange rate pressures, and supply constraints.

He added 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.

The CBN responded with reforms aimed at restoring discipline and credibility. Ways and Means financing declined sharply 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 added that the apex bank implemented 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, which later allowed for easing, with the policy rate reduced to 27.0 per cent in September 2025 and further to 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 the foreign exchange market, Cardoso said the CBN cleared over $7bn in backlog, introduced a willing-buyer, willing-seller system, improved reporting, and strengthened market surveillance. These measures restored transparency and credibility, while diaspora remittances rose from about $200m to $600m monthly, targeting $1bn per month by 2026.

He noted that the reforms narrowed the parallel market premium to below 2 per cent and improved overall market functioning. External reserves strengthened, rising from $38.34bn in February 2025 to $50.12bn in February 2026, while net reserves surged from $3.99bn in 2023 to $34.80bn by the end of 2025. Nigeria’s balance of payments recorded a $4.59bn surplus in the third quarter of 2025, compared to a deficit earlier in the year.

Cardoso said the reforms attracted global recognition, with Fitch and Moody’s upgrading Nigeria’s ratings in 2025, and the country exiting the FATF grey list. The IMF also commended the CBN’s reforms for restoring transparency and discipline in monetary policy.

He highlighted additional banking sector reforms, including new capital requirements, a risk-based capital framework, stricter insider lending rules, and limits on credit to non-performing obligors. Supervisory capacity has been strengthened through digital tools, such as the Early Warning System, and enhanced cross-border oversight.

Cardoso also highlighted reforms in the payments system, including migration to ISO 20022, improved fraud management, and collaboration through the Nigeria Electronic Fraud Forum. Consumer protection and financial inclusion initiatives were expanded through new systems, including the Consumer Complaints Management System and the Women’s Financial Inclusion Dashboard.

According to him, the reforms have yielded results, with inflation declining from 34.8 per cent in December 2024 to 15.06 per cent in February 2026. Exchange rate stability improved, foreign exchange liquidity strengthened, and Nigerians can now use their cards for international transactions. Investor confidence has improved, supported by stronger reserves, better balance of payments, and increased portfolio inflows.

Despite the progress, Cardoso said the apex bank remains cautious, aiming to further reduce inflation to single digits, sustain exchange rate stability, and deepen financial markets. He warned that global risks, including geopolitical tensions and oil price volatility, as well as domestic challenges such as food supply constraints and infrastructure gaps, could affect the outlook.

However, he expressed optimism: “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, said he was encouraged by the monetary policy team’s work, noting that sustained engagement with stakeholders has strengthened policy outcomes and earned global recognition. He emphasised that macroeconomic stability cannot be achieved by a single institution and commended ongoing reforms in the foreign exchange market.

In his welcome address, the Deputy Governor, Economic Policy Directorate at the CBN, Muhammad Abdullahi, said the Monetary Policy Forum has become a key platform for engagement between the apex bank and stakeholders. He stressed that consistent dialogue is necessary to improve policy effectiveness and ensure decisions remain responsive to economic realities.

The CBN earlier disclosed that Nigerian banks attracted a total of N4.61tn in new capital under the recapitalisation programme. A statement from the apex bank noted that 27 per cent of this capital came from foreign investors, and the initiative has positioned banks to absorb shocks, support economic growth, and expand regionally.