The Central Bank of Nigeria (CBN) is implementing policies aimed at strengthening the banking sector and positioning the economy for a ₦1 trillion transformation, according to CBN Governor, Olayemi Cardoso.
Speaking at the Monetary Policy Forum 2025 in Abuja on Thursday, Cardoso emphasized that the CBN’s goal is to ensure that monetary policy remains adaptive, resilient, and forward-looking, in line with Nigeria’s economic growth ambitions.
Strengthening the Banking Sector for Economic Growth
As part of its efforts to bolster financial stability, Cardoso announced that the CBN has introduced new minimum capital requirements for banks, set to take effect from March 2026.
"The CBN is focused on strengthening the banking sector and introducing new minimum capital requirements for banks to ensure resilience and position Nigeria’s banking industry for a $1 trillion economy," he stated.
Additionally, the launch of the Nigeria Foreign Exchange Code this week marks a significant reform in the FX market, designed to enhance integrity, fairness, transparency, and efficiency.
"Built on six core principles, the FX Code represents a binding commitment from the financial community to rebuild trust and inspire confidence," Cardoso explained.
Financial Inclusion and FX Market Reforms
The CBN Governor also highlighted the bank’s commitment to financial inclusion, particularly through initiatives such as the Women Entrepreneurs Finance (We-FI) initiative under the National Financial Inclusion Strategy.
This program aims to bridge the gender gap by ensuring that more women have access to financial services and digital tools.
Other key reforms include:
- A 79.4% increase in remittances through International Money Transfer Operators (IMTOs), which rose to $4.18 billion in the first three quarters of 2024, attributed to FX policy improvements.
- The lifting of FX restrictions on 41 items, reversing the 2015 policy, to promote trade and investment.
Commitment to Macroeconomic Stability
Cardoso stressed that achieving macroeconomic stability requires sustained vigilance and proactive monetary policy. He reaffirmed the CBN’s transition from unorthodox to orthodox monetary policies, with a focus on:
- Restoring market confidence
- Strengthening policy credibility
- Ensuring price stability
"As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability," Cardoso assured.
What’s Next for Nigeria’s Economy?
With these reforms, the CBN is laying the foundation for long-term economic stability, ensuring that the banking sector remains robust in the face of evolving financial challenges. The success of these policies will determine whether Nigeria’s economy can truly transition into the ₦1 trillion era envisioned by policymakers.
