CBN HINTS AT ECONOMIC RESET AS INFLATION FALLS, RESERVES REACH $50BN
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By: Balogun Ibrahim
The Central Bank of Nigeria has indicated a gradual economic reset, crediting its monetary and financial sector reforms for improvements in inflation, foreign reserves, and investor confidence.
Speaking at the CBN Special Day during the 37th Enugu International Trade Fair on Friday, Acting Director of Corporate Communications and Investor Relations, Sidi Hakama, said the bank’s policies are producing measurable results.
“Headline inflation has fallen from a peak of 34.8 percent in late 2024 to 15.06 percent by the end of February 2026,” she noted, emphasizing the central bank’s role in stabilizing prices.
Hakama added that the reforms have also encouraged capital inflows and bolstered external reserves, which have grown from under $10 billion to $50.45 billion.
Hakama noted that capital and investment inflows surged by nearly 200 percent between 2023 and 2025.
“These gains are the result of reforms implemented under CBN Governor Olayemi Cardoso, including a more transparent foreign exchange framework.
“The new FX manual eliminates restrictive capital controls and streamlines trade and investment procedures, boosting market liquidity,” she explained.
She also revealed that the bank is shifting to an inflation-targeting framework aimed at maintaining long-term price stability.
“This marks a major shift toward a forward-looking, rules-based monetary policy focused on long-term price stability. It will help guide market expectations and protect the economy from shocks,” Hakama said.
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Regarding the banking sector, she highlighted progress in the ongoing recapitalisation drive ahead of the March 31, 2026 deadline.
“As of March 17, 32 banks have met the new capital requirements, with roughly 28 percent of recapitalisation funds coming from foreign investors. This demonstrates renewed confidence in Nigeria’s financial system,” she noted.
The reforms have also earned global recognition, with the Central Bank of Nigeria receiving the Central Bank of the Year 2026 Award.
The President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, Nnanyelugo Onyemelukwe, praised the CBN for restoring confidence in the financial sector but warned that high interest rates could limit the gains.
“Although the Monetary Policy Rate was recently lowered from 27.0 percent to 26.5 percent, borrowing costs remain steep. Interest rates need to fall to single digits to improve credit access and boost productivity and GDP,” Onyemelukwe said.
Hakama stated that the CBN’s reforms reflect a strong commitment to stabilising the economy, boosting investor confidence, and promoting sustainable growth in Nigeria.
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