Central Bank of Nigeria reforms drive economic stability

Since assuming office in September 2023, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has implemented a series of monetary and structural reforms aimed at stabilizing the national economy. Key initiatives include the unification of multiple exchange rate windows, the clearing of a $7 billion foreign exchange backlog, and the introduction of a market-driven matching framework to enhance transparency.

These reforms have contributed to a reported increase in Nigeria’s external reserves, which reached $52.73 billion as of July 2026. Additionally, the CBN has overseen a massive banking sector recapitalisation exercise, requiring commercial banks to increase their capital bases to insulate the financial system from shocks.

To combat inflation, the administration utilized decisive monetary tightening, including an 850 basis point interest rate hike over a nine-month period. Experts note that these measures, alongside reforms to Bureau de Change operations and export proceeds management, have worked to restore credibility to the apex bank and improve the functioning of the foreign exchange market.