Cardoso Reassures Senate on Economy, Says CBN Reforms Driving Stability and Growth
By Sarah Kitka
Abuja (Core Reporters) The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured the Senate that the country’s economy remains resilient despite persistent global uncertainties, expressing confidence that ongoing monetary and financial sector reforms will deliver sustained macroeconomic stability and reduce inflation to single digits over the medium term.
Speaking while presenting the Bank’s Mid-Year 2026 Economic Report before the Senate Committee on Banking, Insurance and Other Financial Institutions, Cardoso said Nigeria’s economy recorded steady growth in the first half of the year, supported by strong performance across key sectors, improved foreign exchange market conditions and a stable banking system.
According to him, although geopolitical tensions, particularly the conflict in the Middle East, generated temporary inflationary pressures through higher energy costs and supply chain disruptions, the underlying disinflationary trend has remained intact due to coordinated fiscal and monetary policies.
He said the Monetary Policy Committee (MPC) adopted a data-driven approach throughout the review period, easing monetary conditions in February to support economic growth before retaining the Monetary Policy Rate (MPR) at 26.5 per cent in May to consolidate gains against inflation.
Cardoso disclosed that headline inflation, which rose from 15.06 per cent in February to 15.93 per cent in May following global energy market disruptions, declined slightly to 15.91 per cent in June, signalling a return to its downward trajectory.
“This outcome demonstrates the effectiveness of our monetary policy stance in containing second-round inflationary pressures and anchoring inflation expectations. We remain fully committed to restoring price stability and achieving single-digit inflation over the medium term,” he said.
The CBN Governor told lawmakers that reforms introduced in the foreign exchange market had significantly improved transparency, liquidity and investor confidence.
He noted that the launch of the fourth edition of the Foreign Exchange Manual, implementation of the Nigeria Foreign Exchange Code and deployment of an electronic foreign exchange matching system had strengthened governance and improved price discovery in the market.
According to him, the naira appreciated by about 7.95 per cent during the first half of 2026, with the average exchange rate improving to about ₦1,370.40 per United States dollar from ₦1,490.21 recorded in the second half of 2025.
Cardoso also reported a significant increase in diaspora remittances through official channels, rising from approximately 200 million dollars to over 600 million dollars monthly following exchange rate reforms and the introduction of the non-resident Bank Verification Number (BVN).
He said the apex bank is targeting diaspora remittance inflows of one billion dollars per month by the end of 2026.
The Governor further disclosed that Nigeria’s external reserves increased to approximately 52.73 billion dollars as of July 9, 2026, reflecting stronger foreign exchange inflows and improved market fundamentals.
On the banking sector, Cardoso described the successful completion of the banking recapitalisation programme in March 2026 as one of the country’s most significant financial sector achievements.
He said the exercise mobilised ₦4.65 trillion in fresh capital, with over 72 per cent coming from domestic investors and about 27 per cent from foreign investors, resulting in 33 banks meeting the new minimum capital requirements.
He added that discussions were ongoing to resolve the status of a few non-compliant institutions in a manner that would safeguard financial stability and protect depositors.
Cardoso also highlighted the launch of the Payments System Vision 2028, describing it as a strategic roadmap aimed at building a secure, inclusive, innovative and globally competitive digital payments ecosystem.
He said Nigeria’s improved sovereign ratings by Fitch, Moody’s and Standard & Poor’s further reflected growing international confidence in the country’s macroeconomic management and reform agenda.
Looking ahead, the CBN Governor said the Bank would focus on strengthening post-recapitalisation supervision, deepening foreign exchange market reforms, advancing its transition to an inflation-targeting framework, implementing the Payments System Vision 2028 and preserving financial system stability.
He reiterated the Central Bank’s commitment to maintaining price stability, safeguarding the financial system, strengthening external sector resilience and supporting sustainable economic growth.
Cardoso expressed optimism that with continued collaboration between the National Assembly, fiscal authorities and other stakeholders, Nigeria would consolidate recent gains and build a stronger, more competitive economy.
