![The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso [PHOTO CREDIT: Central Bank of Nigeria]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2026/07/HNaxaJbWIAEcQ9u.jpg?fit=2048%2C1366&ssl=1)
The CBN Governor, Olayemi Cardoso, says in the first half of 2026, the bank witnessed further consolidation of the macroeconomic gains recorded in 2025 through coordinated policy actions implemented over the past three years.
Mr Cardoso stated this on Wednesday when he led a team from the bank to a meeting with the Senate Committee on Banking, Insurance and Other Financial Institutions.
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The committee, chaired by Adetokunbo Abiru (APC, Lagos East), held the session in line with the CBN Act, which requires the CBN governor to brief the National Assembly twice a year.
It was the committee’s first statutory engagement with the apex bank in 2026.
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It scrutinised the bank’s performance on inflation, bank recapitalisation, foreign reserves, foreign exchange management, and other monetary policies.
“When I last appeared before this distinguished committee in December 2025, I reported encouraging progress in inflation moderation, foreign exchange market stabilisation, external reserves accumulation, reform of market infrastructure and significant advances in the banking sector recapitalisation programme.
“I am pleased to report that the first half of 2026 witnessed the consolidation of many of those gains,” Mr Cardoso told the committee.
He said inflation resumed its downward trajectory after a temporary spike caused by the Middle East conflict.
The CBN Governor said the headline inflation rose from 15.06 per cent in February to 15.93 per cent in May before easing slightly to 15.91 per cent in June, reinforcing expectations of sustained moderation.
“This outcome demonstrates the effectiveness of our monetary policy stance in containing second-round inflationary pressures and anchoring inflation expectations. We remain fully committed to restoring price stability and achieving single-digit inflation over the medium term,” he said.
Forex reforms yielding results
Mr Cardoso said reforms in the foreign exchange market had significantly improved transparency, market confidence and liquidity.
He noted that the reforms have reduced speculative activities, strengthened investor confidence and stabilised the naira.
He said the average exchange rate appreciated to N1,375.40/$ in the first half of 2026, while diaspora remittances through official channels increased from about $200 million to over $600 million monthly following the reforms.
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He disclosed that the CBN aims to increase monthly remittances through official channels to $1 billion by the end of the year.
The CBN governor also disclosed that Nigeria’s external reserves rose to $52.73 billion as of 9 July 2026.
N4.65 trillion recapitalisation
On banking sector reforms, Mr Cardoso said banks raised N4.65 trillion in fresh capital, with 72.55 per cent coming from domestic investors and 27.45 per cent from foreign investors.
He further noted that 33 banks have met the revised capital requirements, while discussions are continuing with the few non-compliant institutions to protect depositors and preserve financial stability.
“With recapitalisation now completed, our focus has shifted towards ensuring that stronger capital translates into improved governance, enhanced risk management and support for productive noted that inflation had moderated earlier in the year and conditions in the foreign exchange market improved before the Middle East crisis triggered fresh inflationary pressures.
He said inflation fell to 15.06 per cent in February 2026, prompting the Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate (MPR) from 27 per cent to 26.5 per cent. However, inflation rose again to 15.93 per cent in May following external shocks.
Earlier, Mr Abiru noted that inflation had moderated earlier in the year and conditions in the foreign exchange market improved before the Middle East crisis triggered fresh inflationary pressures.
He said inflation fell to 15.06 per cent in February 2026, prompting the Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate (MPR) from 27 per cent to 26.5 per cent. However, inflation rose again to 15.93 per cent in May following external shocks.
The senator commended the CBN for maintaining exchange rate stability, improving transparency in the foreign exchange market and successfully implementing the banking sector recapitalisation programme.
“Recapitalisation should not become an end in itself. Ultimately, the true measure of a stronger banking system lies not merely in larger balance sheets but in its capacity to mobilise savings efficiently and channel affordable credit to productive sectors of the economy,” Mr Abiru said.
The committee chairman also raised concerns about the few banks yet to meet the recapitalisation requirements, excessive bank charges, consumer complaints and cybersecurity risks.
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