Na big win for Nigeria as Central Bank of Nigeria (CBN) don collect di global “Central Bank of di Year” award for 2026. Di award come from di Central Banking Awards Committee for London, and dem give am to CBN because of di serious reforms wey di bank do to turn Nigeria economy around.
Before dis reforms, Nigeria economy dey inside serious wahala. Inflation don climb reach 22.4 percent for 2023, and foreign exchange reserves dey low. Di gap between official exchange rate and black market rate don open reach 60 percent. Backlog for foreign exchange obligations don pile up to about $7 billion, and Nigeria don fall from number one economy for Africa to number four behind South Africa, Egypt, and Algeria.
One former senior CBN official wey di committee quote say dat time, Nigeria dey look like e go follow di way of Venezuela and Zimbabwe if dem no take quick action. But when President Bola Ahmed Tinubu enter office for May 2023 and appoint Olayemi Cardoso as CBN Governor for October 2023, di bank begin serious reforms.
Di first thing wey CBN do na to stop quasi-fiscal interventions wey dem dey do before. Dem tighten monetary policy, clear di foreign exchange backlogs, and make di bank independent again. Dem also overhaul di foreign exchange market by introducing unified, market-driven system based on willing-buyer, willing-seller model.
Cardoso talk say, “Di naira now dey trade within narrow, stable range. Di big gap wey dey between official and parallel markets don reduce to under 2 percent, down from over 60 percent.” Di bank also clear outstanding FX obligations wey dem owe sectors like aviation and manufacturing, and dis one help restore business confidence.
As a result of improved FX liquidity, stronger capital inflows, and increased non-oil exports, Nigeria gross external reserves rise to $46.7 billion by November 2025. Dis na di highest level for nearly seven years and e provide more than 10 months of import cover.
International Monetary Fund (IMF) for dia July 2025 Article IV assessment commend di reforms, say di measures don improve market confidence and support liquidity for foreign exchange market.
For inflation matter, CBN adopt aggressive monetary tightening, raise interest rates from 18.75 percent for 2023 to 27.5 percent by November 2024. Although inflation initially surge to 34.80 percent for December 2024 after subsidy removal and currency liberalisation, e later decline to 15.10 percent by January 2026.
Food inflation also moderate to 8.9 percent, show say price stability don improve. Di easing inflation trend make di apex bank begin cautious policy easing cycle, reduce benchmark rate to 26.5 percent by February 2026.
Cardoso talk say di bank still dey commit to reduce inflation more, say “di current double-digit rate no fit acceptable,” and dem dey transition towards inflation-targeting framework with support from improved data and communication tools.
Beyond monetary policy, di committee highlight structural reforms for banking sector, including recapitalisation programme wey dem introduce for 2024 wey require banks to meet higher capital thresholds. More than 33 banks don raise fresh capital, with at least 20 already meet di new requirements ahead of March 31, 2026 deadline.
Di apex bank also strengthen supervision by transition towards Basel III standards to improve risk management and liquidity monitoring. Microfinance lending expand by over 14 percent, while digital credit products reach more than 1.2 million small businesses for 2025, support financial inclusion.
For payments and digitalisation, CBN review cash management system, introduce measures to improve ATM efficiency, and strengthen oversight of payment agents nationwide. Over 12 million contactless cards dey circulation now and about 40 fintech firms get support through CBN regulatory sandbox.
Di statement further highlight improvements for governance and compliance, including establishment of dedicated compliance department and enhanced anti-money laundering controls, wey contribute to Nigeria removal from Financial Action Task Force (FATF) grey list for 2025.
International rating agencies also acknowledge di impact of di reforms. Fitch upgrade Nigeria rating from B- to B with stable outlook for April 2025, while Moody's raise its rating from Caa1 to B3 for May, cite improved fundamentals and policy credibility.
Nigeria return to international capital market also mark by $2.35 billion Eurobond issuance for 2025, wey oversubscribe more than five times.
Despite di progress, di committee note say challenges still dey, including sustaining disinflation, completing banking sector recapitalisation, and strengthening institutional frameworks. But dem conclude say di scale of reforms wey di apex bank undertake don significant, with one former official talk say, “Wetin CBN achieve na nothing short of remarkable.”
Di award come at di same time when President Tinubu dey on state visit to United Kingdom, place global attention on Nigeria reform efforts and di apex bank role for stabilising di economy. Members of di awards committee talk say di honour base on di difficult conditions wey CBN inherit and di reforms e implement since 2023.
Di committee talk say before di reforms begin, Nigeria economy dey inside deep crisis. Di country don slip from being Africa largest economy for 2014 to fourth position, behind South Africa, Egypt, and Algeria. Inflation rise sharply from about 15.4 percent for November 2021 to over 22 percent, while foreign exchange reserves weaken despite strict currency controls.
Di situation complicate more by backlog of about $7 billion for foreign exchange obligations wey dem no clear, while di gap between official and parallel market exchange rates widen to about 60 percent. At di same time, heavy subsidies and direct monetary financing create pressure on di economy and make monetary policy difficult to sustain.
When President Tinubu take office for May 2023, di committee note say e meet economy close to wetin dem describe as “hyperinflation” and “fiscal bankruptcy,” with naira dey lose value rapidly and inflation dey rise continuously. Di administration respond with key reforms, including removal of fuel subsidies and liberalisation of foreign exchange market.
But di early impact of dis policies hard for many Nigerians, as prices rise sharply and inflation climb to 34.80 percent by December 2024, di highest level for nearly three decades. Despite dis challenges, di committee talk say CBN under Governor Cardoso introduce reforms aim to restore stability, rebuild confidence, and strengthen financial system.
Di approach focus on disciplined monetary policy, institutional changes, and improved transparency. Cardoso move to end quasi-fiscal interventions where di central bank dey lend directly to sectors of di economy, practice wey contribute to rising inflation. Di bank also carry out internal restructuring, reduce staff numbers, address misconduct, and redeploy workers to areas where dem dey need.
One senior official of di apex bank talk say governance and transparency become central to its operations. According to di official, CBN improve how e communicate policy decisions, strengthen accountability, and adopt analytical tools to guide economic decisions.
One of di most important reforms na for foreign exchange market. CBN introduce willing-buyer, willing-seller system to replace multiple exchange rate windows. E also launch electronic foreign exchange matching system to improve transparency and pricing.
Cardoso talk say di reforms don significantly reduce di gap between official and parallel market rates to less than two percent, compare to over 60 percent previously. E add say di bank don clear di backlog of foreign exchange obligations, wey help restore confidence among investors and businesses.
Di country external reserves don also improve, reach about $46.7 billion by November 2025, di highest level for nearly seven years. International Monetary Fund commend Nigeria efforts, note say reforms for foreign exchange market don improve liquidity and price discovery.
CBN don also take steps to strengthen financial markets by work with Securities and Exchange Commission (SEC) and National Pension Commission (PenCom) to improve transparency for fixed-income market and support long-term investment.
For inflation, di apex bank raise interest rates from 18.75 percent for 2023 to 27.5 percent by late 2024 to control rising prices. Dis measures don begin yield results, with inflation drop to about 15.10 percent by January 2026. Di bank don since make small reductions for interest rates as inflation pressures ease.
Cardoso talk say CBN remain determined to bring inflation down more, note say di current level still too high. E explain say di bank dey work towards adopt inflation-targeting framework with support from International Monetary Fund and Bank of England.
For banking sector, CBN introduce new capital requirements for 2024 to strengthen banks and make sure dem fit withstand economic shocks. More than 30 banks don raise additional capital, with many meet di new requirements ahead of March 2026 deadline.
Di apex bank don also improve supervision, especially for fast-growing areas like fintech and digital finance, while support lending to small businesses. Data from di bank show say digital credit reach over 1.2 million small enterprises for 2025.
In addition, CBN don review Nigeria cash management system, introduce new rules for ATM operations and improve monitoring of payment agents across di country. E also dey invest for digital payment systems, with over 12 million contactless cards now dey use.
Efforts to strengthen financial regulation don also contribute to Nigeria removal from Financial Action Task Force grey list for 2025, development wey dem see as important to improve di country global financial reputation.
International rating agencies don take note of di progress. Fitch Ratings upgrade Nigeria rating for April 2025, while Moody’s also improve its assessment, cite stronger economic fundamentals and reforms.
Despite dis gains, di awards committee talk say challenges remain. Inflation still dey above comfortable levels, banking reforms still dey ongoing, and di legal framework wey guide di central bank need strengthening to ensure greater independence.
Even so, di committee talk say di progress wey dem make so far stand out. One former top CBN official summarise am by talk say, “Wetin CBN achieve na nothing short of remarkable,” statement wey capture di reason behind di global recognition of Nigeria apex bank as Central Bank of di Year 2026.
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