Nigeria Enters New Phase of Macroeconomic Stability, Says CBN Governor
The Central Bank of Nigeria (CBN) has announced that the country has entered a new phase of macroeconomic stability, following two years of difficult reforms. CBN Governor, Olayemi Cardosso, made this statement while delivering the keynote address at the Chartered Institute of Bankers of Nigeria’s 60th Annual Bankers’ Dinner in Lagos.
According to Governor Cardosso, the reforms have restored investor confidence, strengthened the Naira, and placed the economy on a firmer path to sustainable growth. He attributed Nigeria’s turnaround to “disciplined choices and a commitment to transparency, data-driven policies, and institutional rebuilding.” The country’s economy, which was on the brink of collapse in late 2024, has recorded significant progress in inflation control, exchange-rate stability, capital inflows, and banking resilience.
The governor highlighted that inflation has fallen for seven consecutive months, reflecting a sustained and credible policy direction. Inflation declined from 34.6 percent in November 2024 to 16.05 percent in October 2025, the lowest in years. Food inflation also dropped sharply to 13.12 percent in October, down from 21.87 percent in August. This decline is restoring real purchasing power for households and businesses across the country.
The return to orthodox monetary policy and the end of deficit financing have strengthened credibility and anchored inflation expectations. Further disinflation is expected in 2026 as production rises and foreign exchange (FX) liquidity improves. The 2024 reforms enabled the CBN to clear over $7 billion in FX backlogs, which had previously weakened market confidence.
The implementation of the Foreign Exchange Code and the Electronic Foreign Exchange Trading System (EFEMS) platform has removed opacity, improved transparency, and restored discipline to FX trading. The Naira now trades within a narrow, stable range, with the gap with the parallel market falling to less than 2 percent. Interventions are rebuilding reserves “organically,” supported by rising non-oil exports and stronger capital inflows.
Governor Cardosso emphasized that Nigeria’s economic foundations are now stronger, following FX unification, EFEMS deployment, and modernized supervision. The progress achieved reflects partnership, discipline, and “the courage to pursue necessary reforms.” The Central Bank will remain disciplined, forward-looking, and committed to ensuring stability and inclusive, sustainable growth.
Looking ahead to 2026, the governor outlined priorities, including stronger banking stability, full inflation-targeting, and a modernized payments ecosystem. Other goals include boosting responsible fintech innovation, strengthening institutional capacity, and deepening global regulatory partnerships. With Nigeria’s removal from the Financial Action Task Force (FATF) grey list in 2025, the country is expected to experience eased banking frictions and increased integration.
