From David Onuoja, Abuja
The Central Bank of Nigeria (CBN), has assured the Senate that the country’s economic reforms are gaining traction, with the apex bank projecting single-digit inflation over the medium term after posting major gains in banking capitalization, foreign exchange stability, external reserves and diaspora remittances.
Presenting its Mid-Year (2026) Economic Report before the Senate Committee on Banking, Insurance and Other Financial Institutions, CBN Governor, Olayemi Cardoso, said the economy remained resilient despite persistent global economic shocks, insisting that coordinated fiscal and monetary policies are gradually restoring macroeconomic stability.
He added that, although the Middle East conflict temporarily disrupted global energy markets and pushed up domestic prices, Nigeria’s inflation trajectory has started reversing.
According to him, headline inflation moved from 15.06 per cent in February to 15.93 per cent in May following external shocks before easing to 15.91 per cent in June; a development he described as evidence that inflationary pressures are beginning to moderate.
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Cardoso attributed the improvement to the prudent monetary policy, noting that the Monetary Policy Committee (MPC), eased monetary conditions in February to support growth before retaining the Monetary Policy Rate (MPR), at 26.5 per cent in May to consolidate progress against inflation.
“We remain fully committed to restoring price stability and achieving single-digit inflation over the medium term,” he said.
He also informed the Senate that sweeping reforms in Nigeria’s foreign exchange market have significantly strengthened investor confidence and improved liquidity.
Saying, the implementation of the Nigeria Foreign Exchange Code, the release of the fourth edition of the Foreign Exchange Manual, and the deployment of an electronic foreign exchange matching platform have enhanced transparency and improved price discovery in the market.
The reforms, according to Cardoso, contributed to the appreciation of the naira by 7.95 per cent during the first half of 2026, with the average exchange rate strengthening from ₦1,490.21/$1 in the second half of 2025 to ₦1,370.40/$1.
It equally revealed that diaspora remittances through official channels have tripled, rising from about $200 million monthly to over $600 million, following exchange rate reforms and the introduction of the Non-Resident Bank Verification Number (BVN) initiative.
To forge ahead, the CBN governor said the Bank will intensify post-recapitalization supervision, deepen foreign exchange reforms, transition towards an inflation-targeting framework, implement the Payments System Vision 2028 and sustain policies aimed at strengthening financial system stability.
He however, called for continued collaboration between the Senate, fiscal authorities and other stakeholders, expressing confidence that Nigeria is on course to consolidate recent economic gains, reinforce investor confidence and build a stronger, more competitive economy.
