CBN Gov’s Award Highlights Gains from Nigeria’s Banking Reforms

The Central Bank of Nigeria’s ongoing reform programme has continued to draw international recognition, with Governor Olayemi Cardoso recently receiving the Central Bank of the Year 2026 award from the Central Banking Awards Committee in London.

The honour, announced during the 13th annual Central Banking Awards, has focused global attention on Nigeria’s financial sector overhaul, including monetary tightening, foreign exchange liberalisation, and a recapitalisation drive that are reshaping inflation trends and investor sentiment.

Accepting the award at a ceremony in London last week, Cardoso dedicated the recognition to the board, management, and staff of the CBN, describing it as acknowledgement of collective efforts to restore confidence in the nation’s economy.

He noted that the reforms, while difficult, had become necessary to address mounting economic pressures. Key measures introduced include aggressive efforts to curb inflation, far-reaching foreign exchange market reforms, and investments in digital and financial infrastructure.

The Central Banking Awards Committee noted that before the current reforms, Nigeria faced a severe economic crisis with rapidly depreciating currency, mounting inflationary pressures, and weakening confidence.

Following the removal of fuel subsidies and liberalisation of the foreign exchange market, inflation peaked at 34.80 per cent in December 2024. However, the committee said disciplined monetary policy and institutional reforms under Cardoso’s leadership had helped restore stability.

Under the reform programme, the CBN terminated quasi-fiscal interventions, restructured internally, and improved governance and transparency. A willing-buyer, willing-seller framework replaced multiple exchange rate windows, while an electronic foreign exchange matching system was introduced to enhance price discovery.

The gap between official and parallel market exchange rates has reportedly narrowed to less than two per cent, down from over 60 per cent. The CBN also cleared a backlog of foreign exchange obligations, helping to restore investor confidence.

Nigeria’s external reserves rose to approximately $46.7 billion by November 2025, the highest level in nearly seven years. Meanwhile, the Monetary Policy Committee raised interest rates from 18.75 per cent in 2023 to 27.5 per cent by late 2024.

Cardoso stated that these measures have begun to yield results, with inflation falling to about 15.69 per cent by April 2026, though he acknowledged the rate remains high and reaffirmed the bank’s commitment to bringing it down further.

The award committee also highlighted Nigeria’s removal from the Financial Action Task Force grey list, the completion of the banking sector recapitalisation exercise, and modernisation of the payments system as major achievements.

Analysts note that the growing international confidence could help attract additional foreign investment into banking, fintech, agriculture, and infrastructure sectors. The CBN is now working on a new foreign exchange manual and policy framework to expand participation and ensure consistency in reform implementation.