The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that 32 Nigerian banks have already met the revised minimum capital requirements under the ongoing banking recapitalisation programme, achieving a major milestone in strengthening the country’s financial system.
Speaking at the Monetary Policy Forum in Abuja on Thursday, Cardoso described the progress as “commendable,” noting that it enhances the sector’s ability to mobilise long-term investment and support Nigeria’s ambition of becoming a $1 trillion economy.
“The recapitalisation programme has significantly reinforced the resilience and capacity of the banking system, positioning it to fund productive investment and contribute to sustainable economic growth,” he said.
Strengthening Governance and Risk Management
Cardoso explained that the recapitalisation is part of broader reforms aimed at improving governance and risk oversight. Measures include a risk-based capital framework, phased exit from regulatory forbearance, stricter enforcement of insider lending rules, and restrictions on credit to major non-performing borrowers.
The CBN has also upgraded supervisory capacity through enhanced digital early-warning systems, off-site monitoring, and stronger cross-border supervision for banks with international operations.
Inflation Control and Monetary Policy Success
Highlighting the impact of monetary policy, Cardoso said headline inflation fell from 34.8% in December 2024 to 15.06% in February 2026. The Monetary Policy Committee’s aggressive 875-basis-point interest rate hike in 2024, followed by gradual easing to 26.5% in February 2026, was pivotal in reversing inflation trends.
Foreign Exchange Reforms and Diaspora Inflows
On foreign exchange, Cardoso said the CBN cleared over $7 billion in FX backlogs and implemented a rule-based willing-buyer, willing-seller system to enhance transparency. He also noted that diaspora remittances have surged from $200 million to $600 million monthly, with a target of $1 billion per month by year-end 2026, reflecting stronger settlement systems and regulatory oversight.
Gross external reserves rose to $50.12 billion in February 2026, up from $38.34 billion a year earlier, while net reserves increased from $3.99 billion in 2023 to $34.8 billion in 2025. These improvements were attributed to better reserve management, diversification strategies including gold integration, and enhanced external asset management.
Fiscal Discipline and Global Recognition
Cardoso highlighted reforms in fiscal-monetary coordination, including the reduction of Ways and Means financing from N26.95 trillion in May 2023 to N2.84 trillion by January 2026, which strengthened central bank independence and signaled the end of fiscal dominance. These reforms have contributed to sovereign rating upgrades and Nigeria’s exit from the FATF grey list in 2025.
Outlook
Looking ahead, Cardoso said the CBN will focus on maintaining single-digit inflation, sustaining exchange rate stability, and consolidating reserves. He projected domestic growth at 4.49% in 2026 but cautioned about external risks such as geopolitical tensions and oil price volatility.
“The most challenging phase of macroeconomic adjustment is now behind us,” he said, stressing that collaboration among all stakeholders is key to sustaining these gains.
The CBN also reported that Nigerian banks have mobilised N4.61 trillion in fresh capital under the recapitalisation programme, reflecting strong investor confidence and growing foreign participation in the sector.
