The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has told the Senate that Nigeria’s economy remains resilient in the face of global uncertainty. Presenting the CBN’s Mid-Year 2026 Economic Report, he expressed confidence that ongoing monetary and financial sector reforms will deliver sustained macroeconomic stability and bring inflation down to single digits over the medium term.
Cardoso said the economy posted steady growth in the first half of the year. The expansion was supported by strong performance across key sectors, improved conditions in the foreign exchange market, and a stable banking system. He noted that these fundamentals provided a buffer against external shocks.
While acknowledging that geopolitical tensions, especially the conflict in the Middle East, created temporary inflationary pressure through higher energy costs and supply chain disruptions, Cardoso said the underlying disinflationary trend held. The Monetary Policy Committee took a data-driven approach during the period, easing conditions in February to support growth and then holding the Monetary Policy Rate at 26.5 per cent in May to consolidate the fight against inflation. 
The impact is already visible in the numbers. 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. Cardoso described the June moderation as evidence that policy is working to contain second-round effects and anchor expectations, and reiterated the Bank’s commitment to restoring price stability.
Reforms in the foreign exchange market have also yielded results. The launch of the fourth Foreign Exchange Manual, the Nigeria Foreign Exchange Code, and an electronic matching system have improved transparency, liquidity, and price discovery. The naira appreciated by about 7.95 per cent in H1 2026, with the average rate strengthening to around ₦1,370.40 per dollar from ₦1,490.21 in late 2025. Diaspora remittances through official channels jumped from roughly $200 million to over $600 million monthly after the reforms and the introduction of the non-resident BVN, and the CBN is targeting $1 billion per month by year end. External reserves stood at about $52.73 billion as of July 9, 2026.
In the banking sector, Cardoso highlighted the completion of the recapitalisation programme in March as a landmark achievement. The exercise mobilised ₦4.65 trillion in fresh capital, with more than 72 per cent from domestic investors and about 27 per cent from foreign investors. Thirty-three banks now meet the new minimum capital requirements, while discussions continue on a few non-compliant institutions to protect depositors and maintain stability.
The CBN is also laying groundwork for the next phase of growth. Cardoso announced the launch of Payments System Vision 2028, a roadmap to build a secure, inclusive, and globally competitive digital payments ecosystem. He added that upgrades to Nigeria’s sovereign ratings by Fitch, Moody’s, and S&P reflect growing international confidence in the country’s reform agenda and macroeconomic management.
Looking ahead, the Bank will focus on post-recapitalisation supervision, deeper FX market reforms, a transition to an inflation-targeting framework, implementation of Payments System Vision 2028, and overall financial system stability. Cardoso said the CBN remains committed to price stability, a sound financial system, and stronger external resilience, and expressed optimism that continued collaboration with the National Assembly and fiscal authorities will help Nigeria consolidate gains and build a more competitive economy.
