The Senate has lauded the Central Bank of Nigeria (CBN) for its reform efforts and the steady improvement in Nigeria’s financial and monetary indicators in the first half of 2025.
This commendation was made during a statutory oversight engagement between the Senate Committee on Banking, Insurance and Other Financial Institutions and the CBN Governor, Mr. Yemi Cardoso, held at the National Assembly.
Chairman of the committee, Senator Adetokunbo Abiru, praised the apex bank’s policy direction, describing recent developments as encouraging signs of macroeconomic stability and growing investor confidence.
“Since our last meeting in December 2024, there have been encouraging developments in the Nigerian financial and monetary landscape,” Senator Abiru noted in his opening remarks.
He cited a drop in headline inflation from 23.71% in April to 22.97% in May 2025, a gradual build-up in external reserves, and increased exchange rate stability — particularly a narrowing gap between the official and parallel market rates — as evidence of progress.
“These outcomes reflect improved confidence in the foreign exchange market, supported by the Bank’s reform measures such as the FX Matching System and FX Code, designed to deepen market transparency and discipline,” he added.
The committee also commended the Monetary Policy Committee (MPC) of the CBN for maintaining the Monetary Policy Rate (MPR) at 27.50% during its February and May 2025 meetings. Senator Abiru described this as “a deliberate pause to the rate hikes witnessed in 2024, signalling a more balanced approach in managing inflation and supporting growth.”
The Senate further praised what it described as “pragmatic flexibility” in the CBN’s ongoing banking sector recapitalisation programme, particularly the limited but strategic regulatory forbearance extended to Deposit Money Banks.
“This policy, while carefully crafted to avoid systemic risk, reflects a pragmatic approach by the Bank to ease transitional burdens on financial institutions,” Abiru said.
Among the highlights of the committee’s review was the recent renewal of Nigeria’s bilateral currency swap agreement with China, which enables trade settlement in local currencies. The Senate said the initiative would reduce Nigeria’s dependency on the US dollar and support CBN’s goal of diversifying the country’s external reserves.
The committee also welcomed the introduction of the Non-Resident Bank Verification Number (NRBVN) framework, aimed at enhancing Know-Your-Customer (KYC) compliance for Nigerians living abroad.
“This initiative is critical for expanding the reach of formal banking services and ensuring financial system integrity in an increasingly globalised economy,” Senator Abiru stated.
Despite the progress, the committee acknowledged that certain areas still require improvement, noting that these would be addressed during a closed-door session with the CBN Governor.
In his presentation, Mr. Cardoso outlined several policy achievements under his administration, attributing recent economic gains to deliberate reforms and strategic interventions aligned with the federal government’s long-term economic goals.
“To support the vision for the $1 trillion GDP by 2030, the Bank initiated a forward-looking recapitalisation of the banking sector as a potent catalyst for driving this vision,” Cardoso stated.
He reaffirmed the CBN’s commitment to policy discipline, institutional reforms, and collaborative efforts to bolster investor confidence and economic resilience.
The engagement marked a rare moment of harmony between the legislature and the apex bank, with lawmakers expressing satisfaction with the CBN’s reform trajectory while underscoring the need for continuous oversight and policy fine-tuning.
