Cardoso: Financial sector reforms rebuilding Nigeria’s economy

The Central Bank of Nigeria (CBN) has stated that ongoing reforms in the financial sector are strengthening the foundations of Nigeria’s economy, pointing to improvements in banking recapitalisation, inflation management and stability in the foreign exchange market.

The apex bank disclosed this in a statement on Thursday following remarks by its governor, Olayemi Cardoso, during the Distinguished Alumni Lecture held as part of the Founders’ Day celebration of St. Gregory’s College in Lagos.

Delivering a lecture titled “Strong Foundations: From the Classroom to the Capital Base,” Cardoso said the reforms introduced in Nigeria’s financial system are designed to rebuild macroeconomic stability and strengthen institutions that support long-term economic growth.

According to him, the same values that shape responsible individuals also underpin strong economies and resilient financial institutions.

“The principles that build strong individuals, such as discipline, integrity and intellectual curiosity, are the same principles that sustain strong economies and resilient financial institutions,” he said.

Cardoso noted that the Nigerian economy had faced significant challenges in recent years, including macroeconomic imbalances, exchange-rate volatility and rising inflation. He said restoring stability requires consistent policy discipline and efforts to rebuild institutional credibility.

The CBN governor also gave an update on the banking sector recapitalisation programme launched in 2024, describing it as a key step toward strengthening the financial system and improving banks’ ability to support economic transformation.

He disclosed that as of March 2026, 33 banks had successfully raised additional capital, while 30 institutions had already met the new minimum capital requirements for their respective licence categories. Other banks, he said, are undergoing routine regulatory verification under the central bank’s compliance framework.

Cardoso further pointed to improvements in inflation trends following recent monetary policy adjustments, noting that inflation had dropped significantly from a peak of about 34 per cent to around 15 per cent.

He also said reforms in the foreign exchange market had helped narrow the gap between official and parallel market exchange rates. According to him, the premium between both markets declined sharply from about 50 per cent in 2022 to less than two per cent in 2025 after measures were introduced to improve transparency and liquidity.

The CBN governor added that Nigeria’s external reserves have strengthened, recently exceeding $50bn, while capital inflows and investments into the country increased significantly between 2023 and 2025.

Cardoso also highlighted the growing role of financial technology in expanding financial inclusion, noting that Nigeria now hosts one of the most vibrant fintech ecosystems globally.

He encouraged students to develop interdisciplinary skills, stressing that the future workforce would require a blend of technological knowledge, creativity and analytical thinking.

Meanwhile, the CBN has continued to introduce additional reforms in the banking sector beyond the recapitalisation programme.

The latest directive gives Deposit Money Banks 18 months to fully comply with new baseline standards for automated anti-money laundering systems, while other financial institutions have 24 months from March 10, 2026, to meet the requirements.