The Central Bank of Nigeria has announced the implementation of bold and far-reaching reforms aimed at strengthening the nation’s economy against external shocks and restoring investor confidence, with the ongoing bank recapitalisation exercise scheduled to close on March 31, 2026, making significant progress. Governor Olayemi Cardoso, speaking at the 37th Enugu International Trade Fair, disclosed that 32 banks had met the new capital requirements as of March 17, 2026, with approximately 28 per cent of the capital raised so far coming from foreign investors. He described this as a clear indication of renewed confidence in Nigeria’s financial system, following years of uncertainty that had dampened foreign portfolio participation.
Cardoso, represented by Sidi Ali Makama, acting director of Corporate Communications and Investor Relations, noted that the reforms have increased transparency and liquidity in the foreign exchange market. The new Forex manual has removed many restrictions, simplified trade and investment procedures, and positioned the CBN to unveil plans for a new payment system vision aimed at making Nigeria a regional leader in digital and cross-border payments. These measures represent a departure from previous administrative controls toward a more market-driven framework that aligns with the bank’s orthodox monetary policy orientation.
As part of the reform agenda, the CBN is transitioning to inflation targeting, a significant shift toward a more transparent, forward-looking, and rules-based monetary policy system anchored in long-term price stability. The policy is designed to shape market expectations and limit the disruptive effects of supply-side shocks. Cardoso emphasised that the fight against inflation has been steadfast, with the tight monetary policy stance playing a key role in reducing headline inflation from a peak of 34.8 per cent in May 2024 to 15.0 per cent by the end of February 2026. This disinflationary trend has been accompanied by almost a 200 per cent increase in capital and investment flows between 2023 and 2025, and an increase in external reserves from less than $10 billion to $50.45 billion.
The reforms have earned the CBN the Central Bank of the Year 2026 Award, part of the committee’s celebration of excellence among central banks globally. Cardoso noted that the award reflects the bank’s commitment to institutional transparency and market-driven foreign exchange frameworks, which have been central to the restoration of credibility. The bank reaffirmed its dedication to maintaining economic stability, advancing structural reforms, and enhancing collaboration with institutional stakeholders and partners.
On the payment system front, the CBN is working to ensure the supply of clean notes in the appropriate mix, while calling on Nigerians to respect the naira as a critical symbol of national identity. The bank urged citizens to avoid mutilating or counterfeiting the currency, refraining from spraying it at social events, and keeping it clean—a call that underscores the importance of maintaining confidence in the national currency as a store of value and medium of exchange.
Nnanyelugo Onyemelukwe, president of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, commended the CBN for using the trade fair opportunity to explain its efforts to strengthen the economy and build public confidence. He however urged the bank to ensure that monetary policies stabilise the naira and welcomed the recent reduction in interest rates, calling for further reduction to a single-digit rate. His remarks reflect the ongoing tension between monetary tightening to control inflation and the need for affordable credit to support MSMEs, which are critical drivers of economic growth.
The trade fair theme, “Empowering MSMEs for Global Competitiveness,” aligns with the CBN’s reform agenda, as the bank recognises that micro, small, and medium enterprises remain central to economic growth. The reforms’ success will ultimately be measured by whether they translate into improved access to finance, stable prices, and a predictable business environment that enables MSMEs to invest, expand, and compete in regional and global markets.
