He also noted rapid growth in digital payments. The fintech sector is expanding significantly. More than 12 million contactless cards have been issued. The regulatory sandbox now hosts over 40 innovators. Interoperability across switching companies has deepened.

Cardoso reiterated the CBN’s support for innovation. However, this support operates within a framework. This framework safeguards consumers and financial stability.

Global Recognition for Reforms

Global rating agencies acknowledge Nigeria’s reform progress. Fitch recently upgraded Nigeria. It moved from B- to B with a stable outlook. Moody’s shifted the country from Caa1 to B3. S&P changed the outlook from stable to positive.

Priorities for 2026 and Optimistic Outlook

Looking to 2026, Cardoso outlined key priorities. These include strengthening banks’ resilience. Improving price stability is another goal. This will use a refined inflation-targeting framework. Expanding the digital payments network is also crucial. Enhancing oversight of fintech operators is planned. Modernising internal CBN processes is underway. Building stronger partnerships, both domestically and internationally, completes the list.

He concluded his address with optimism. Nigeria is better positioned to handle external shocks. This is thanks to a flexible exchange-rate regime. Rising non-oil exports, a growing services sector, and firmer reserves provide support.

Nigeria’s economic landscape shows clear signs of recovery. This is according to Dr. Olayemi Cardoso.

The Central Bank of Nigeria (CBN) Governor confirmed this progress. He stated the country has entered a more stable phase. This follows two years of extensive monetary reforms.

Cardoso addressed bankers and financial leaders. He spoke at the 60th Annual Bankers Dinner. The event was organised by the Chartered Institute of Bankers of Nigeria in Lagos.

There, he declared Nigeria has “turned a decisive corner.” This marks a key moment in its reform journey.

Key Economic Improvements

The CBN Governor highlighted several positive trends. He noted easing inflation and a steadier foreign exchange market. Stronger investor confidence also contributes. These factors indicate an economy regaining its balance.

Cardoso explained the Bank’s approach. It embraced orthodox monetary policy. It also implemented firmer regulatory oversight. These actions are gradually correcting long-standing economic distortions.

Inflation on the Decline

Inflation figures show significant improvement. It was 34.6 per cent in November 2024. This rate dropped to 16.05 per cent by October 2025.

Food inflation also decreased. It retreated to 13.12 per cent. Earlier in the year, it hovered near 22 per cent.

Cardoso affirmed the CBN’s commitment. It will keep adjusting policy instruments. The goal is to guide inflation towards single-digit levels.

Stabilising the Foreign Exchange Market

A major focus of his review was the foreign exchange (FX) market. Cardoso confirmed the CBN fully settled the multi-billion-dollar FX backlog.

This backlog was inherited by the current administration. It was previously estimated at over seven billion dollars. Clearing these arrears has restored confidence. This applies to foreign airlines, manufacturers, and portfolio investors.

Cardoso attributed renewed stability to key reforms. These include the unification of exchange rates. The Electronic Foreign Exchange Management System was also introduced. Furthermore, the Nigerian FX Market Conduct Code played a role.

These measures reduced opacity. They also discouraged arbitrage. The naira now trades within a tighter band. The gap between official and parallel market rates is below 2 per cent. This is a dramatic improvement from over 60 per cent previously.

Boosting Investor Confidence and External Reserves

Improved stability has attracted more investor inflows. These reached 20.98 billion dollars. This occurred in the first ten months of 2025. It represents a 70 per cent jump compared to all of 2024.

Cardoso also highlighted a rebound in Nigeria’s external reserves. They now stand at 46.7 billion dollars. This is the highest level in almost seven years. It provides more than ten months of import cover.

He stressed that reserves are rising organically. This is due to stronger FX liquidity and non-oil exports. Increased diaspora remittances also contribute. New borrowing is not the cause.

Strengthening the Financial System

The recapitalisation of banks is progressing well. This was another point of discussion. Twenty-seven banks have already raised new funds. Sixteen institutions have met or surpassed new capital thresholds. They did so ahead of the March 31, 2026 deadline.

Stress tests this year confirm the financial system’s health. It remains broadly sound. The Bank also strengthened oversight of ATMs and POS agents. Rules for branch closures were revised. A full review of the cash distribution network was completed.

Nigeria Exits FATF Grey List

Cardoso described Nigeria’s removal from the Financial Action Task Force (FATF) grey list as a major win. Countries on this list often see capital inflows drop. This can be up to 7.6 per cent in the first year.

Nigeria’s exit eases compliance pressure. It affects correspondent banks. It also boosts global confidence. The country’s financial conduct is now viewed more favourably.

Growth in Digital Payments and Fintech

Cardoso reiterated the CBN’s support for innovation. However, this support operates within a framework. This framework safeguards consumers and financial stability.