The Central Bank of Nigeria (CBN) has been named the Central Bank of the Year 2026 by the Central Banking Awards Committee in London, a recognition that reflects what the organisers described as a major turnaround in Nigeria’s economic management within a short period.

The award, announced during the 13th annual Central Banking Awards, came at a time when President Bola Ahmed Tinubu was on a state visit to the United Kingdom, placing global attention on Nigeria’s reform efforts and the apex bank’s role in stabilising the economy.

Members of the awards committee said the honour was based on the difficult conditions the CBN inherited and the reforms it has implemented since 2023. According to them, Nigeria’s economy was in a deep crisis before the current reforms began. The country had slipped from being Africa’s largest economy in 2014 to fourth position, behind South Africa, Egypt, and Algeria. Inflation rose sharply from about 15.4 per cent in November 2021 to over 22 per cent, while foreign exchange reserves weakened despite strict currency controls.

The situation was further complicated by a backlog of about $7 billion in foreign exchange obligations that had not been cleared, while the gap between official and parallel market exchange rates widened to about 60 per cent. At the same time, heavy subsidies and direct monetary financing created pressure on the economy and made monetary policy difficult to sustain.

A former senior official of the CBN, quoted by the awards committee, said the situation at the time raised fears that Nigeria could face a crisis similar to countries like Venezuela and Zimbabwe if urgent steps were not taken.

When President Tinubu took office in May 2023, the committee noted that he met an economy close to what they described as “hyperinflation” and “fiscal bankruptcy,” with the naira losing value rapidly and inflation rising continuously. The administration responded with key reforms, including the removal of fuel subsidies and the liberalisation of the foreign exchange market.

However, the early impact of these policies was difficult for many Nigerians, as prices rose sharply and inflation climbed to 34.80 per cent by December 2024, the highest level in nearly three decades.

Despite these challenges, the committee said the CBN, under its governor, Olayemi Cardoso, introduced reforms aimed at restoring stability, rebuilding confidence, and strengthening the financial system. The approach focused on disciplined monetary policy, institutional changes, and improved transparency.

Cardoso moved to end quasi-fiscal interventions where the central bank had been lending directly to sectors of the economy, a practice that contributed to rising inflation. The bank also carried out internal restructuring, reducing staff numbers, addressing misconduct, and redeploying workers to areas where they were needed.

A senior official of the apex bank said governance and transparency became central to its operations. According to the official, the CBN improved how it communicates policy decisions, strengthened accountability, and adopted analytical tools to guide economic decisions.

One of the most important reforms was in the foreign exchange market. The CBN introduced a willing-buyer, willing-seller system to replace multiple exchange rate windows. It also launched an electronic foreign exchange matching system to improve transparency and pricing.

Cardoso said the reforms have significantly reduced the gap between official and parallel market rates to less than two per cent, compared to over 60 per cent previously. He added that the bank has cleared the backlog of foreign exchange obligations, which helped restore confidence among investors and businesses.

The country’s external reserves have also improved, reaching about $46.7 billion by November 2025, the highest level in nearly seven years. The International Monetary Fund commended Nigeria’s efforts, noting that reforms in the foreign exchange market have improved liquidity and price discovery.

The CBN has also taken steps to strengthen the financial markets by working with the Securities and Exchange Commission and the National Pension Commission to improve transparency in the fixed-income market and support long-term investment.

On inflation, the apex bank raised interest rates from 18.75 per cent in 2023 to 27.5 per cent by late 2024 in a bid to control rising prices. These measures have started to yield results, with inflation dropping to about 15.10 per cent by January 2026. The bank has since made small reductions in interest rates as inflation pressures eased.

Cardoso said the CBN remains determined to bring inflation down further, noting that the current level is still too high. He explained that the bank is working towards adopting an inflation-targeting framework with support from the International Monetary Fund and the Bank of England.

In the banking sector, the CBN introduced new capital requirements in 2024 to strengthen banks and ensure they can withstand economic shocks. More than 30 banks have raised additional capital, with many meeting the new requirements ahead of the March 2026 deadline.

The apex bank has also improved supervision, especially in fast-growing areas such as fintech and digital finance, while supporting lending to small businesses. Data from the bank shows that digital credit reached over 1.2 million small enterprises in 2025.

In addition, the CBN has reviewed Nigeria’s cash management system, introduced new rules for ATM operations and improved monitoring of payment agents across the country. It is also investing in digital payment systems, with over 12 million contactless cards now in use.

Efforts to strengthen financial regulation have also contributed to Nigeria’s removal from the Financial Action Task Force grey list in 2025, a development seen as important for improving the country’s global financial reputation.


International rating agencies have taken note of the progress. Fitch Ratings upgraded Nigeria’s rating in April 2025, while Moody’s also improved its assessment, citing stronger economic fundamentals and reforms.

Despite these gains, the awards committee said challenges remain. Inflation remains above comfortable levels, banking reforms are ongoing, and the legal framework guiding the central bank needs strengthening to ensure greater independence.

Even so, the committee said the progress made so far stands out. A former top CBN official summed it up by saying, “What the CBN has achieved is nothing short of remarkable,” a statement that captures the reason behind the global recognition of Nigeria’s apex bank as Central Bank of the Year 2026.