Apex bank credits sweeping reforms for price stability, rising investor confidence, and stronger external reserves…..
The Central Bank of Nigeria has pointed to early signs of economic recovery, citing a sharp decline in inflation, a significant rise in foreign reserves, and renewed investor confidence as evidence that its reform agenda is gaining traction.
Speaking at the CBN Special Day during the 37th Enugu International Trade Fair, the Acting Director of Corporate Communications and Investor Relations, Sidi Hakama, said recent monetary and financial sector policies are beginning to deliver measurable results.
According to her, headline inflation has dropped markedly from a peak of 34.8 percent in late 2024 to 15.06 percent as of February 2026 signaling progress in the bank’s efforts to stabilise prices.
Inflation Eases, Reserves Climb
Hakama also revealed that Nigeria’s external reserves have seen a dramatic rebound, rising from below $10 billion to over $50 billion within the same reform period.
She added that capital inflows into the economy have nearly tripled between 2023 and 2025, reflecting improved sentiment among both domestic and foreign investors.
“These outcomes are not accidental,” she noted. “They are the direct result of deliberate policy choices aimed at restoring transparency and confidence in the system.”
FX Reforms Driving Confidence
A major pillar of the recovery, according to the apex bank, is the overhaul of the foreign exchange market under the leadership of CBN Governor Olayemi Cardoso.
Hakama explained that a newly introduced FX framework has removed several restrictive controls, simplified trade processes, and improved liquidity in the market.
“The new system is more transparent and investor-friendly,” she said, adding that it has made it easier for businesses and investors to operate within Nigeria’s financial ecosystem.
Shift to Inflation Targeting
In a significant policy shift, the CBN is also transitioning toward an inflation-targeting framework moving away from reactive measures to a more structured, forward-looking approach.
Hakama described the change as a move toward a rules-based system designed to anchor expectations, enhance policy credibility, and protect the economy from external shocks.
“This is about building a system that delivers long-term stability, not just short-term fixes,” she said.
Banking Sector Shows Strength
The bank also reported progress in its ongoing recapitalisation exercise, with a majority of financial institutions already meeting new capital thresholds ahead of the March 31, 2026 deadline.
Notably, about 28 percent of recapitalisation funds have come from foreign investors another signal, the CBN says, of growing confidence in Nigeria’s financial system.
Concerns Over High Interest Rates
Despite the positive outlook, concerns remain about the cost of borrowing.
The President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, Nnanyelugo Onyemelukwe, acknowledged the progress made but warned that persistently high interest rates could limit the broader impact of the reforms.
Although the Monetary Policy Rate has been slightly reduced from 27.0 percent to 26.5 percent, he argued that rates must fall to single digits to truly unlock credit access, boost productivity, and accelerate economic growth.
Recognition and the Road Ahead
The reforms have not gone unnoticed on the global stage, with the CBN recently receiving the “Central Bank of the Year 2026” award, an endorsement of its policy direction.
Still, the challenge ahead remains balancing stability with growth. While inflation is easing and reserves are strengthening, businesses and households continue to grapple with high borrowing costs.
For the CBN, the message is clear: the reset has begun—but sustaining it will require careful navigation of the next phase of economic policy.
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