Lawmakers insist on accountability as CBN touts inflation drop, FX stability and rising reserves
The Senate on Thursday demanded a comprehensive explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus, even as the apex bank reported that Nigeria’s economy had entered its most stable period in more than a decade.
The request came during a statutory briefing by the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Tokunbo Abiru, who opened the session with a strong call for transparency and accountability.
Abiru said the Auditor-General’s query on the unremitted funds required a “full, clear and documented response,” stressing that public confidence in monetary governance depended on strict compliance with financial regulations.
While acknowledging the CBN’s progress in stabilising the foreign exchange market and slowing inflation, Abiru noted that such achievements must be matched by institutional responsibility. He said the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and detail measures to prevent future lapses.
Cardoso: ‘Nigeria Experiencing Renewed Macro Stability’
CBN Governor Olayemi Cardoso, who appeared before the committee, delivered an extensive review of the economy, asserting that Nigeria was witnessing “renewed macroeconomic stability” across several key indicators.
According to him, headline inflation had fallen for seven consecutive months, dropping from 34.6% in November 2024 to 16.05% in October 2025, the sharpest and longest disinflation trend in more than ten years. Food inflation, he added, had slowed to 13.12%, driven by improved supply conditions and a more predictable exchange rate.
Cardoso described the foreign-exchange market as “fundamentally transformed,” saying speculative attacks and arbitrage had largely disappeared. He noted that the gap between the official and parallel markets had narrowed to below 2%, down from more than 60% a year earlier.
As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
Reserves, Remittances and Capital Inflows Surge
The governor also reported a significant rise in external reserves to $46.7 billion, the highest in nearly seven years and enough to cover more than ten months of imports.
He said diaspora remittances had surged to about $600 million monthly, while foreign capital inflows hit $20.98 billion in the first ten months of 2025, a 70% increase over 2024 and more than four times the inflow recorded in 2023.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, a move he said helped restore investor confidence and strengthen Nigeria’s balance-of-payments position.
Banking Sector Recapitalisation on Track
On the banking sector, Cardoso said recapitalisation efforts were progressing smoothly. Twenty-seven banks have raised new capital, while sixteen have already met or exceeded the new regulatory requirements ahead of the March 31, 2026 deadline. He also highlighted improvements in ATM cash availability, digital payments supervision and cybersecurity compliance.
Senate Seeks Clarification on Multiple Policy Issues
Despite the positive economic indicators, lawmakers pressed the CBN on several outstanding issues.
Abiru requested explanations on:
- The sustained 45% Cash Reserve Ratio (CRR)
- The 75% CRR applied to non-TSA public-sector deposits
- Status of FX forward settlements
- Circulation of mutilated naira notes
- Concerns over excessive bank charges
- Rising failed electronic transactions
- Compliance of CBN subsidiaries with National Assembly oversight
He also sought an update on the activities of the Financial Services Regulatory Coordinating Committee, emphasizing the need for stronger inter-agency collaboration to maintain public trust.
The session later transitioned into a closed-door meeting, where further deliberations continued.
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