CBN Governor Outlines Gains from Banking Recapitalisation and Monetary Reforms
Oru Leonard
Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that Nigeria’s ongoing financial-sector reforms are strengthening the country’s economic foundations, highlighting notable progress in banking recapitalisation, inflation control, and stability in the foreign-exchange market.
Speaking at the Distinguished Alumni Lecture during the Founders’ Day celebration of St. Gregory’s College Lagos, Cardoso emphasised that strong institutions and disciplined policy frameworks remain essential for sustainable economic growth.
Delivering a lecture titled “Strong Foundations: From the Classroom to the Capital Base,” the CBN Governor explained that the values that build strong individuals—discipline, integrity, and intellectual curiosity—are the same principles that sustain strong economies and resilient financial institutions.
Cardoso noted that Nigeria’s economy has faced significant pressures in recent years, including macroeconomic imbalances, exchange-rate volatility, and rising inflation.
According to him, restoring stability requires disciplined monetary policy and renewed institutional credibility.
He explained that the banking recapitalisation programme introduced in 2024 was designed to strengthen the capacity of Nigerian banks to support the country’s long-term economic transformation.
The Governor said that the progress under the programme has been steady.
“As of March 2026, thirty-three banks have successfully raised additional capital, while thirty institutions have already met the new minimum capital requirements for their respective licence categories,” Cardoso said adding that the remaining institutions are currently undergoing routine regulatory verification in line with the Central Bank’s compliance framework.
Cardoso also highlighted improvements in inflation management and foreign-exchange market operations.
He explained that the Bank’s return to a more orthodox monetary policy environment has helped reduce inflation significantly—from a peak of about 34 per cent to around 15 per cent.
Similarly, reforms in the foreign-exchange market have narrowed the gap between official and parallel market rates, with the premium declining from about 50 per cent in 2022 to less than two per cent in 2025.
The Governor further noted that Nigeria’s external reserves have strengthened, recently exceeding $50 billion, while capital and investment inflows into the country increased significantly between 2023 and 2025.
Looking ahead, Cardoso emphasised the growing role of financial technology in expanding financial inclusion, describing Nigeria as home to one of the world’s most dynamic fintech ecosystems.
He also encouraged students to embrace interdisciplinary skills, noting that future careers will increasingly require a blend of technology, creativity, and analytical thinking.
(CBN Media)
