CBN

By Salmanu Isah Darazo

The Central Bank of Nigeria (CBN), is entering another important phase in its monetary-policy reform journey, with the Monetary Policy Committee’s latest decision to reset the Monetary Policy Rate (MPR) at 23 per cent and recalibrate the Standing Facilities Corridor marking a significant operational adjustment in the way monetary policy is transmitted across the Nigerian financial system.

At its 307th meeting held on September 21 and 22, 2026, the MPC approved a corridor of +50/-300 basis points around the MPR, while retaining the Cash Reserve Requirement at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks and 75 per cent for non-TSA public-sector deposits. The CBN says the measures are designed to strengthen monetary-policy transmission and reinforce the MPR as the principal signal of monetary policy.

The significance of the decision goes beyond the headline 23 per cent rate. At the heart of the latest move is the CBN’s attempt to correct a structural weakness that had emerged between the official policy rate and prevailing market rates. According to the MPC, this divergence had weakened the effectiveness of monetary-policy transmission. The Bank’s ongoing repair of its monetary-policy implementation framework, including the adoption of the Nigerian Overnight Funding Rate (NOFR) as a transaction-based operational benchmark, is intended to make money-market operations more transparent and ensure that the MPR carries greater influence over financial conditions.

This is therefore less about simply moving an interest-rate number and more about strengthening the machinery through which the CBN implements monetary policy. The Committee was explicit that the corridor recalibration should not be interpreted as a change in the underlying monetary-policy stance. Rather, it described the move as an operational realignment intended to improve transmission and support Nigeria’s transition towards an inflation-targeting framework.

The timing is equally important. The CBN is making this adjustment against the backdrop of improving macroeconomic indicators. Headline inflation fell marginally from 15.43 per cent in July to 15.39 per cent in August 2026, while food inflation declined from 20.31 per cent to 19.57 per cent. Core inflation also fell significantly, from 14.97 per cent to 13.29 per cent. The 12-month moving average of headline inflation has now moderated for 20 consecutive months, according to the MPC.

For the CBN, perhaps more important than the individual monthly figures is the broader direction of travel. The Committee linked the moderation in inflation to the effects of earlier monetary-policy tightening, exchange-rate stability and improved inflation expectations. That assessment suggests that the Bank believes previous policy measures are increasingly feeding through into the wider economy, creating room to concentrate more heavily on improving the efficiency of its policy framework.

The real economy is also providing the CBN with a stronger platform for this recalibration. Nigeria’s real GDP expanded by 4.43 per cent in the second quarter of 2026, compared with 3.89 per cent in the first quarter. Both oil and non-oil sectors recorded stronger performances, while the Purchasing Managers’ Index climbed to 52.7 points in August from 51.1 points in July, pointing to continued expansion in business activity.

Perhaps the strongest evidence of improved external-sector conditions is found in the country’s reserves and balance-of-payments position. Gross external reserves stood at US$55.25 billion as of September 18, 2026—the highest level in 18 years and equivalent to approximately 11.3 months of import cover. Meanwhile, the balance-of-payments surplus increased to US$3.51 billion in the second quarter from US$2.38 billion in the first quarter, while the current-account surplus rose by 67.92 per cent to US$7.54 billion.

Taken together, these indicators explain why the CBN sees sufficient “headroom” for the operational reset. The Bank is effectively trying to consolidate gains already made in inflation, foreign-exchange stability, external reserves and financial-system resilience while making its monetary-policy transmission mechanism more coherent and predictable. The successful recapitalisation of the banking sector, which the MPC says has strengthened capital buffers and banks’ capacity to finance long-term projects, forms another important component of this evolving architecture.

The recalibration also comes at a time when the CBN is placing greater emphasis on coordination between monetary and fiscal authorities. The communiqué highlights the Memorandum of Understanding on fiscal-monetary coordination between the Federal Government, represented by the Ministry of Finance, and the CBN. The stated objective is to provide a structured framework for policy harmonisation towards achieving low and stable inflation.

That coordination could prove particularly important because the CBN’s outlook is not without risks. The Bank identifies prolonged geopolitical tensions in the Middle East, elevated global energy prices and election-related spending as potential sources of renewed inflationary pressure. Globally, growth is projected at 3.0 per cent in 2026, down from 3.5 per cent in 2025, while supply-chain disruptions, commodity-price pressures and trade fragmentation continue to pose risks to the global inflation outlook.

The emerging picture, therefore, is one of a CBN seeking to move from emergency-style monetary tightening towards a more structured and rules-based monetary-policy framework. The 23 per cent MPR is only one part of that story. The deeper story is the effort to ensure that the policy rate actually performs its intended function as the principal monetary-policy signal, with market operations, benchmarks and standing facilities working around it in a more transparent and effective manner.

For Governor Olayemi Cardoso and the CBN, the latest MPC decision consequently represents another chapter in the broader institutional rebuilding of Nigeria’s monetary-policy framework. The immediate challenge will be implementation: whether the recalibrated corridor succeeds in improving transmission without disrupting the disinflation process, while maintaining exchange-rate stability and supporting economic expansion.

The MPC has committed to evaluating the effectiveness of the new corridor and keeping future decisions data-dependent. Its next meeting is scheduled for November 23 and 24, 2026. The direction of monetary policy from that point will provide another important test of whether the current combination of easing inflation, stronger external buffers, expanding output and improved market transmission can be sustained.

Ultimately, the September 2026 decision is best understood not simply as another MPC rate announcement, but as an attempt by the CBN to make Nigeria’s monetary-policy system work more precisely. With inflation moderating, reserves strengthening, output expanding and the financial system undergoing recapitalisation, the Bank is using the present macroeconomic window to recalibrate the machinery of monetary policy—placing the MPR more firmly at the centre of the framework and laying another institutional foundation for a more effective inflation-targeting regime.

Salmanu Isah Darazo is a publisher, analyst and editor. He can be reached via Salmanudrz@gmail.com

By Salmanu Isah Darazo

Three years after Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria (CBN), the apex bank has undergone a period of extensive institutional and policy reforms, with the emphasis increasingly placed on financial-system resilience, market transparency, stronger regulation and the modernisation of Nigeria’s financial architecture.

Mr. Cardoso assumed office on September 22, 2023, at a particularly demanding period for Nigeria’s monetary and financial system. His tenure has subsequently been marked by a succession of reforms designed to strengthen the banking sector, deepen the foreign-exchange market, modernise payment infrastructure and reinforce confidence in the financial system. The fact sheet documenting his tenure also notes commendation from President Bola Ahmed Tinubu and international recognition, including the Central Bank of the Year Award by Central Banking, London.

Perhaps the most consequential development has been the completion of the banking-sector recapitalisation exercise. By March 31, 2026, 33 banks had met the revised minimum capital requirements, collectively raising approximately ₦4.65 trillion in fresh capital. About 72.55 per cent of the funds were sourced domestically. Beyond the headline figure, the exercise represents an attempt to create a banking system with greater capacity to withstand shocks and provide stronger support for economic activity.

The reform agenda has also extended into corporate governance and financial inclusion. New succession requirements introduced for Domestic Systemically Important Banks were designed to strengthen leadership continuity and governance, while the CBN’s approval of the Bank of Industry’s Non-Interest Banking Window opened another channel for alternative and potentially more inclusive financing. These measures indicate that the reform programme is not limited to capital adequacy but also addresses institutional continuity and the diversity of financing options available within the economy.

On the foreign-exchange front, the CBN has pursued a more structured and transparent market framework. The fourth edition of the Foreign Exchange Manual, launched in May 2026, was designed to improve transparency, efficiency and credibility in FX operations while reinforcing market-driven principles. At the retail end, licensed Bureau de Change operators were given structured access to foreign exchange through authorised dealer banks, backed by an FX BDC Purchase Tracker intended to strengthen compliance and real-time oversight.

Other FX reforms have targeted the flow and monitoring of foreign exchange from major sources. International oil companies were permitted to repatriate 100 per cent of export proceeds through authorised dealer banks, while new settlement requirements for International Money Transfer Operators were introduced to improve the transparency and traceability of diaspora remittances. Additional crude-oil export terminals were also allocated to strengthen monitoring and compliance across the oil and gas export chain.

The payments ecosystem has equally become a major front in the CBN’s reform programme. The Payments System Vision 2028, launched in June 2026, provides a strategic roadmap built around interoperability, security, inclusion, innovation, trust and collaboration. Alongside this broader strategy, revised agent-banking guidelines, Point-of-Sale geo-fencing and dual-connectivity requirements, as well as enhanced instant-payment security measures, have sought to improve reliability, consumer protection and the security of Nigeria’s rapidly expanding digital-payment environment.

Consumer protection and the fight against financial fraud have also received greater regulatory attention. The revised cash policy introduced new withdrawal thresholds while removing restrictions and charges on cash deposits. Financial institutions were directed to withdraw misleading advertisements, while banks were required to strengthen rapid-response mechanisms against electronic fraud. The strengthened BVN and watch-list framework, the Cybersecurity Self-Assessment Tool and automated standards for monitoring money laundering, terrorist financing and proliferation financing further demonstrate the Bank’s attempt to move financial-system supervision toward more proactive and technology-driven enforcement.

Another important dimension is the modernisation of Nigeria’s financial markets. The introduction of the Nigerian Overnight Financing Rate in April 2026 created a transaction-based overnight benchmark intended to improve price discovery, market transparency, monetary-policy transmission and risk management. Reforms to fixed-income trading and settlement infrastructure, alongside changes to discount-window and liquidity-market arrangements, have similarly sought to make financial markets more efficient and strengthen the transmission of monetary policy.

The reserve position provides another significant marker in the reform story. In 2026, locally sourced gold refined to international LBMA Good Delivery standards was added to Nigeria’s external reserve assets, providing another layer of diversification. More significantly, external reserves crossed the US$50 billion threshold — described in the fact sheet as the highest level in approximately 17 years. The development represents a stronger external buffer and is presented as part of the broader improvement in foreign-exchange-market conditions.

Taken together, the reforms suggest that the Cardoso era at the CBN has been defined less by a single headline intervention than by an attempt to rebuild several interconnected parts of Nigeria’s financial architecture. Banking recapitalisation addresses institutional resilience; FX reforms target market transparency; payments reforms respond to digitalisation; cybersecurity and consumer-protection measures address emerging risks; while financial-market reforms seek to improve the machinery through which monetary policy operates.

The significance of the three-year milestone, therefore, lies not simply in the number of policies introduced but in whether these reforms can be sustained and translated into durable economic outcomes. A stronger banking system, deeper financial markets, more transparent FX operations, safer digital payments and larger external buffers provide important foundations. The next phase will ultimately be judged by how effectively those foundations support investment, credit, financial inclusion and broader economic stability.

Three years into Cardoso’s tenure, the reform agenda has clearly moved beyond crisis management toward institutional rebuilding. Its enduring test will be implementation: whether the new rules, systems and capital buffers become embedded strongly enough to make Nigeria’s financial system more resilient, transparent and capable of supporting long-term economic growth.

Salmanu Isah Darazo is a publisher, analyst and editor. He writes from Bauchi, and can be reached via Salmanudrz@gmail.com

By Salmanu Isah


The Central Bank of Nigeria (CBN) has once again demonstrated its preference for caution and stability, opting to retain the Monetary Policy Rate (MPR) at 26.5 per cent despite a gradual easing of inflationary pressures across the country.


At the end of its 306th Monetary Policy Committee (MPC) meeting, the apex bank resisted calls for an immediate adjustment to interest rates, choosing instead to hold all major monetary policy parameters steady. The decision reflects the CBN’s determination to protect the progress made in stabilising the economy while remaining vigilant against fresh threats emerging from the global environment.


For the CBN, the modest decline in inflation is encouraging but not yet sufficient to justify a policy shift. Although headline inflation eased slightly in June and core inflation recorded a more noticeable drop, policymakers remain concerned that renewed tensions in the Middle East could trigger another wave of global price increases, particularly in energy and food markets. Such developments would inevitably have consequences for Nigeria, where imported inflation continues to influence domestic prices.


The Bank’s decision signals confidence in the effectiveness of its previous policy actions. Over the past two years, the CBN has maintained a firm anti-inflation stance, tightening monetary conditions and implementing reforms aimed at restoring confidence in the foreign exchange market. The latest economic indicators suggest that some of these measures are beginning to deliver results.


Exchange rate stability has improved considerably compared to previous periods, helping to reduce pressure on prices. External reserves have also strengthened, rising above $52 billion, providing a significant buffer against external shocks and reinforcing investor confidence in the economy. These developments have given the CBN greater room to maintain its current course while carefully monitoring future trends.


Beyond inflation, the MPC’s statement highlights the growing importance of collaboration between the CBN and the Federal Government. The Committee acknowledged that recent coordination between fiscal and monetary authorities has helped cushion the domestic economy from global disruptions. This recognition reflects a broader understanding that sustainable economic stability cannot be achieved through monetary policy alone.


While the CBN continues to focus on price and financial system stability, the government is expected to complement these efforts through reforms that boost productivity, improve infrastructure, increase oil production and diversify revenue sources. The Committee’s endorsement of ongoing reforms in the oil and solid minerals sectors underscores the need for broader economic transformation beyond monetary interventions.


The banking sector also emerged as a bright spot in the MPC’s assessment. The Committee expressed satisfaction with the progress of the banking recapitalisation exercise, describing it as a significant step towards strengthening the resilience of financial institutions. A stronger banking system not only enhances financial stability but also positions banks to support economic growth through increased lending and investment.


Despite a slight slowdown in economic growth during the first quarter of 2026, signs of resilience remain visible. The non-oil sector continues to drive economic activity, supported by telecommunications, financial services, transportation and trade. The return of the Purchasing Managers’ Index to expansion territory further suggests that business confidence may be gradually improving.


Looking ahead, the CBN appears cautiously optimistic. Inflation is expected to moderate further as the effects of previous monetary tightening continue to filter through the economy and food supplies improve during the harvest season. However, policymakers are clearly unwilling to declare victory too early. The possibility of a prolonged conflict in the Middle East remains a major concern, with the potential to disrupt global markets and reignite inflationary pressures.


Ultimately, the CBN’s latest decision reflects a central bank focused on protecting hard-earned gains rather than pursuing quick wins. By holding rates steady, the Bank is sending a message that economic stability remains its overriding objective. For businesses, investors and households alike, the decision provides a measure of predictability at a time when uncertainty continues to dominate the global economic landscape.


As Nigeria navigates both domestic challenges and external risks, the CBN’s cautious approach suggests that maintaining stability will remain more important than pursuing aggressive policy changes in the months ahead.


Salmanu Isah Darazo is a publisher and policy analyst. He can be reached via Salmanudrz@gmail.com

By Abdullahi Mukhtar Algasgaini

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks with immediate effect, citing serious regulatory breaches that threatened depositors’ funds and financial stability.

In a sweeping enforcement action approved by CBN Governor Mr. Olayemi Cardoso, the apex bank wielded its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, to shut down the affected institutions from July 1, 2026.

According to a statement by the bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the revocation followed the failure of the microfinance banks to meet one or more statutory requirements, including insufficient assets to cover liabilities, unauthorised closure of operations, prolonged inactivity, failure to commence business within 12 months of licence approval, and inability to maintain minimum capital funds unimpaired by losses.

The CBN described the mass revocation as a necessary step to protect the integrity of the financial system, safeguard depositors, and ensure that all licensed institutions operate within the bounds of the law. “The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system,” the statement said, adding that further regulatory actions would be taken where necessary to sustain public confidence.

In a rare move, the CBN also released the full list of affected banks, naming them as:

1. Minji-Se Churchill MFB

2. Merchant MFB

3. Janmaa MFB

4. Busu MFB

5. Gold MFB

6. Zain MFB (formerly Dawakin Tofa MFB)

7. Bompai MFB

8. Ajwa MFB (formerly Gezawa MFB)

9. NOW NOW DIGITAL MFB

10. Crystabel Microfinance Bank

11. Chanelle MFB

12. Abia SME MFB

13. Kamba MFB

14. Iwade MFB

15. Winview MFB

16. Zuru MFB

17. Minjibir MFB

18. Shanono MFB

19. Sumaila MFB

20. Rimin Gado MFB

21. Mwaghavul MFB

22. Sycamore MFB

23. TOFA MFB

24. Safegate MFB

25. Creekline MFB

26. Bestar MFB

27. Livingspring MFB

28. Apple MFB

29. Stanford MFB

30. Frontline MFB

31. Zafec MFB

32. Supreme MFB

33. Bejin-Doko MFB

34. Kanopoly MFB

35. Bellbank MFB (formerly Tsanyawa MFB)

36. Yeneng MFB

37. Creditville MFB

38. MBAG MFB

39. STRAIGHT SAHARA MFB

40. OURPASS MFB

41. VERDANT MFB

42. BASAWA MFB

43. CASHA MFB

44. ESTEEM MFB

45. ENTREPRENEUR MFB

46. AVANTUS MFB

Financial analysts view the unprecedented publication of the defaulter list as a signal of the CBN’s tougher posture under Governor Cardoso, particularly in the microfinance subsector, where weak governance and capital erosion have been persistent concerns. The affected banks are now expected to commence winding-down procedures and settle outstanding obligations to depositors in line with existing resolution frameworks.

By Salmanu Isah Darazo

The decision by the Central Bank of Nigeria to retain the Monetary Policy Rate (MPR) at 26.5 per cent reflects a carefully calibrated policy direction aimed at balancing inflation control, exchange rate stability and economic growth amid mounting global uncertainties.

At the end of its 305th Monetary Policy Committee (MPC) meeting held on May 19 and 20, 2026, the apex bank chose to maintain all key monetary parameters, signaling a continuation of its tight monetary policy stance despite moderating inflation indicators and improving macroeconomic fundamentals.

The decision comes at a time when Nigeria’s economy is navigating both domestic recovery and external shocks arising from geopolitical tensions, particularly the ongoing Middle East crisis, which has triggered increases in global energy prices and logistics costs.

For policymakers at the Central Bank of Nigeria, the challenge is not merely reducing inflation, but ensuring that the gains achieved through recent economic reforms are not reversed by premature policy loosening.

Inflation Still the Primary Concern

Although headline inflation rose marginally from 15.38 per cent in March to 15.69 per cent in April 2026, the MPC viewed the increase as temporary and largely imported. Food inflation climbed to 16.06 per cent due to rising transportation and logistics costs, while core inflation moderated to 15.86 per cent.

More significantly, month-on-month inflation slowed sharply to 2.13 per cent from 4.18 per cent, while the 12-month average inflation rate declined for the sixth consecutive month.

These indicators suggest that the aggressive monetary tightening pursued by the Central Bank of Nigeria over the past two years is gradually yielding results.

However, the MPC’s decision to hold rates rather than begin easing indicates that the apex bank remains cautious about declaring victory over inflation too early. Monetary authorities appear concerned that loosening rates prematurely could reignite inflationary pressures, weaken investor confidence and place renewed strain on the foreign exchange market.

By retaining the benchmark rate, the Central Bank of Nigeria is attempting to anchor inflation expectations while preserving confidence in the broader macroeconomic framework.

Reform Gains Influencing Monetary Confidence

A key message from the MPC meeting is that Nigeria’s recent policy reforms are beginning to strengthen economic resilience.

The committee repeatedly referenced exchange rate stability, stronger external reserves, improved monetary policy transmission and fiscal consolidation as evidence that the economy is better positioned to withstand external shocks than in previous years.

Gross external reserves increased to $49.49 billion as of mid-May 2026, enough to cover more than nine months of imports. This represents a major buffer against exchange rate volatility and external market pressures.

The committee also highlighted the successful completion of the banking recapitalisation exercise, which produced 33 stronger and better-capitalised banks capable of supporting economic growth and financial stability.

Taken together, these developments appear to have reinforced the confidence of the Central Bank of Nigeria in maintaining a steady policy stance rather than resorting to emergency tightening measures.

Growth Versus Tight Monetary Policy

One of the recurring criticisms of high interest rates is their impact on private sector borrowing, investment and overall economic growth.

At 26.5 per cent, Nigeria’s benchmark interest rate remains one of the highest in Africa, raising concerns among manufacturers and businesses about the cost of credit.

Nevertheless, recent economic data suggest that growth has remained relatively resilient despite the tight monetary environment. Nigeria’s economy expanded by 4.07 per cent in the fourth quarter of 2025, supported by growth in agriculture, industry and services sectors.

The oil sector also recorded stronger performance due to improved refining activities.

For the MPC, these growth figures may have strengthened the argument that the economy can still withstand elevated interest rates while inflation is being brought under control.

This reflects the classic central banking dilemma: tightening monetary policy may slow borrowing and spending in the short term, but policymakers believe such measures are necessary to restore long-term macroeconomic stability.

Global Uncertainty Shaping Domestic Decisions

Another important factor behind the MPC’s cautious approach is the uncertain global economic outlook.

The committee warned that geopolitical tensions, energy market disruptions and tighter financial conditions could slow global growth and sustain inflationary pressures across many economies.

Around the world, major central banks are increasingly adopting a cautious and data-driven approach, slowing or pausing monetary easing despite signs of moderating inflation.

The Central Bank of Nigeria appears to be aligning with this global trend by prioritising stability over rapid policy adjustments.

This approach is particularly important for emerging economies like Nigeria, where investor sentiment, exchange rate movements and external financing conditions are highly sensitive to monetary policy signals.

Implications for Nigerians

For ordinary Nigerians, the decision means borrowing costs are likely to remain high in the near term. Commercial bank lending rates may continue to constrain access to affordable credit for businesses and households.

However, the MPC believes maintaining policy discipline is necessary to prevent a return to severe inflationary pressures that could further erode purchasing power and destabilise the economy.

If inflation continues to moderate and exchange rate stability persists over the coming months, the Central Bank of Nigeria may eventually consider gradual monetary easing.

For now, however, the central bank appears determined to consolidate recent macroeconomic gains before making any major policy shift.

The overall message from the MPC meeting is clear: stability remains the priority, and the Central Bank of Nigeria is unwilling to risk reversing the fragile progress achieved through recent reforms.

Salmanu Isah Darazo is a publisher and policy analyst. He can be reached via Salmanudrz@gmail.com

By Uzair Adam

The Livestock Productivity and Resilience Support Project (L-PRES), in collaboration with the Development Bank of Nigeria (DBN), has rewarded outstanding participants at the end of its North-West Regional Capacity Building Programme in Kano, following a competitive assessment designed to test their knowledge of financial management and business practices.

The programme, which focused on bridging the livestock agribusiness finance gap, concluded on Friday with participants drawn from Kano, Kaduna, Sokoto and Zamfara states.

Speaking at the closing session, the Capacity Building Manager of DBN, Fortune Tamunokuro Granville, said the assessment was conducted to evaluate participants’ understanding of key training modules, particularly financial literacy and financial management.

He explained that the test, which comprised 50 multiple-choice questions, was aimed at ensuring that livestock entrepreneurs acquire the knowledge required to formalise their businesses and become eligible for funding.

“The essence of the programme is to ensure access to credit for livestock farmers, and that can only happen when they understand financial management and properly structure their businesses,” he said.

Granville noted that the process was transparent, as scripts were independently marked without interference from project officials.

According to him, the top-performing participants from each of the four states received grants of one million naira each to support their businesses.

He added that two female participants who emerged among the highest scorers were also awarded N250,000 each, in line with DBN’s commitment to gender inclusion.

“In total, we had six winners. This is to encourage them to apply what they have learned and continue improving their businesses,” he said, adding that the bank is also considering a mentorship programme to support beneficiaries beyond the training.

Also speaking, the Permanent Secretary of the Kano State Ministry of Agriculture and Natural Resources, Dr. Bashir Sunusi, who represented the Commissioner, Dr. Danjuma Mahmud, said the workshop had provided a platform to address critical financing challenges affecting the livestock sector.

He noted that discussions during the programme highlighted the need for stronger collaboration among government, financial institutions and private sector actors to unlock opportunities across the livestock value chain.

Sunusi reaffirmed the commitment of the Kano State Government under Governor Abba Kabir Yusuf to supporting agricultural transformation and creating an enabling environment for agribusinesses to thrive.

“The insights generated here must be translated into concrete actions that will benefit farmers, processors and other stakeholders,” he said.

On their parts, some of the participants described the training as impactful, noting that it had equipped them with practical knowledge to improve their businesses.

One of the winners, Dr. Mu’iz Bakari from Kaduna State, expressed gratitude for the opportunity, saying the training had exposed him to better ways of managing and expanding his livestock enterprise.

“What we have learned will be applied directly to our business. We will correct our mistakes and expand, especially in poultry production,” he said, adding that the grant would be used to grow his farm and create employment.

Similarly, Usman Abdullahi Usman from Kano State said emerging among the top participants out of over a hundred attendees was both surprising and motivating.

“This support will help me expand my business and should encourage others to take such opportunities seriously and work hard,” he said.

Other winners include Nasiru Lawal from Sokoto State and Idris Umar from Zamfara State, while the additional female awardees are Fatima Sani from Sokoto and Hafsat Ololade Akin from Kaduna.

The programme brought together stakeholders across the livestock value chain, including farmers, financial institutions and development partners, as part of efforts to improve access to finance and promote sustainable agribusiness growth in the region.

By Salmanu Isa Darazo


Nigeria’s banking sector has entered a new phase of strength and global relevance following the successful completion of a sweeping recapitalisation exercise spearheaded by the Central Bank of Nigeria (CBN).

The exercise, which mandated banks to meet new capital thresholds by March 31, 2026, is widely regarded as the most significant reform since the 2005 consolidation era—signalling a bold regulatory shift aimed at repositioning the financial system for long-term economic transformation.


A Strategic Reform Anchored by the CBN

At the heart of the exercise is the CBN’s vision to build a resilient, well-capitalised banking system capable of supporting Nigeria’s ambition of a $1 trillion economy. By enforcing higher capital requirements, ranging from ₦10 billion for regional non-interest banks to ₦500 billion for international commercial banks—the apex bank has effectively reset the industry’s financial architecture.

The results are striking: Nigerian banks collectively raised ₦4.65 trillion, with 33 institutions meeting the new thresholds. Notably, the recapitalisation attracted both local (72.55%) and international (27.45%) investments, underscoring renewed investor confidence in Nigeria’s financial system and regulatory credibility.


Strengthening Stability and Global Competitiveness

Analysts note that the recapitalisation significantly enhances banks’ ability to absorb economic shocks while aligning Nigeria’s financial system with global standards such as Basel III.

Beyond compliance, the reform signals a transition to stronger corporate governance, improved risk management, and enhanced regulatory oversight—all driven by the CBN’s supervisory framework.

This positions Nigerian banks not just as domestic financial intermediaries, but as competitive players in the global financial ecosystem.


Unlocking Financing for National Development

A key outcome of the CBN-led reform is the expansion of banks’ lending capacity. With stronger balance sheets, financial institutions are now better equipped to fund large-scale projects across critical sectors, including infrastructure, energy, manufacturing, and technology.

This increased capacity is expected to accelerate Nigeria’s industrialisation drive and support export diversification—key pillars of the Federal Government’s economic agenda.


CBN’s Role in Policy Coordination and Economic Stability

The recapitalisation also reflects growing synergy between monetary and fiscal authorities. By aligning its policies with government growth objectives, the Central Bank of Nigeria is strengthening policy transmission mechanisms, improving liquidity management, and reinforcing inflation control measures.

This coordinated approach enhances macroeconomic stability while ensuring that financial sector reforms translate into real economic outcomes.


A Foundation for Inclusive Growth

Beyond macroeconomic gains, the reform carries significant implications for financial inclusion. A stronger banking system is better positioned to expand credit access to small and medium enterprises (SMEs), support grassroots economic activities, and deepen financial penetration across underserved communities.

The CBN’s broader objective, analysts say, is to build a financial system that is not only robust but inclusive—capable of delivering growth that is both sustainable and widely shared.










The Road Ahead

While most banks have met the new requirements, those yet to fully recapitalise remain operational and are progressing toward compliance under CBN supervision.

Industry observers agree that the recapitalisation marks a turning point—laying the groundwork for a stronger, more transparent, and globally competitive banking sector.

Conclusion

The recapitalisation exercise is more than a regulatory adjustment—it is a strategic economic intervention led by the Central Bank of Nigeria. By strengthening financial institutions, boosting investor confidence, and aligning with national development goals, the CBN has set the stage for sustained economic growth and stability.

For Nigeria, the message is clear: a resilient banking system is not just desirable—it is essential for the future.

Salmanu Isah Darazo is an analyst and publisher, he can be reached via Salmanudrz@gmail.com

The Monetary Policy Committee of the Central Bank of Nigeria has lowered the benchmark interest rate to 26.5 per cent.

The decision marks the second rate cut under the current leadership of the apex bank.

Governor Olayemi Cardoso announced the outcome on Tuesday after the committee’s 304th meeting held in Abuja.

Cardoso said, “The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5%.”

He also stated that the MPC resolved to “retain the Standing Facilities Corridor around the MPR at +50/-450 basis points” and to “retain the Cash Reserve Requirement for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.”

The latest adjustment follows a similar 50-basis-point reduction in September 2025, while the committee maintained rates at its November 2025 meeting.

According to the governor, the move was based on “a balanced evaluation of risks to the outlook,” which indicates that “the ongoing disinflation trajectory would continue, largely supported by the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.”

He explained that headline inflation declined slightly to 15.10 per cent in January 2026 from 15.15 per cent recorded in December 2025. This represents the eleventh straight month of year-on-year decline.

Cardoso added that “Food inflation declined markedly to 8.89 per cent from 10.84 per cent,” while “core inflation declined to 17.72 per cent from 18.63 per cent.”

On a month-to-month basis, inflation dropped to -2.88 per cent in January from 0.54 per cent in December. The committee said this reflects “a continued softening of price pressures.”

The governor also highlighted progress in the external sector. He said the country’s gross external reserves increased to $50.45 billion as of February 16, 2026. He described it as “the highest in 13 years,” with an import cover of 9.68 months for goods and services.

He attributed the growth in reserves to stronger export earnings and higher remittance inflows. He said these factors have supported exchange rate stability and boosted investor confidence.

Cardoso further noted the introduction of Presidential Executive Order 09, which channels oil and gas revenues into the Federation Account. The committee “welcomed” the order and “acknowledged the potential impact of this Order in improving fiscal revenue and accretion to reserves.”

On the banking sector, the governor said key financial indicators remain within regulatory limits. He disclosed that 20 out of 33 banks involved in the recapitalisation programme have met the new minimum capital requirement. The committee described this as “steady progress towards a more robust and well-capitalised financial system.”

The MPC reiterated “the strategic importance of the recapitalisation exercise” and urged the bank to ensure its successful completion to strengthen resilience and support growth.

On economic performance, the Purchasing Managers’ Index stood at 55.7 points in January 2026. This suggests continued expansion in economic activity and possible improvement in output for the last quarter of 2025.

Looking ahead, Cardoso said the outlook shows that “the current momentum of domestic disinflation will continue in the near term,” supported by exchange rate stability and better food supply.

He, however, warned that “increased fiscal releases, including election-related spending, could pose upside risk to the outlook.”

The governor reaffirmed the MPC’s commitment to “an evidence-based policy framework, firmly anchored on the Bank’s core mandate of ensuring price stability, while safeguarding the soundness and resilience of the financial system.”

He added that the next MPC meeting is scheduled for May 19 and 20, 2026.

By Muhammad Abubakar

The Corporate Affairs Commission (CAC) has issued a public notice announcing a nationwide crackdown on unregistered Point of Sale (PoS) operators, with enforcement set to begin on 1 January 2026.

According to the statement, the Commission observed a rapid rise in PoS agents operating without proper registration—an act that violates the Companies and Allied Matters Act (CAMA) 2020 as well as Central Bank of Nigeria (CBN) Agent Banking Regulations. The CAC described the trend as a reckless practice that exposes Nigeria’s financial system and citizens’ investments to significant risks, allegedly aided by some fintech companies.

From the effective date, no PoS operator will be allowed to run without CAC certification. Security agencies have been directed to ensure full compliance, including seizing or shutting down unregistered PoS terminals. Fintech companies found enabling such illegal operations will be placed on a watchlist and reported to the CBN.

The Commission urged all PoS operators to regularize their business registrations immediately, stressing that compliance is mandatory. The notice was signed by CAC Management on 6 December 2025.

By Abdulrasheed Musa Kofa,

For years, Nigeria has leaned on its diaspora as a hidden anchor of survival. Beyond emotional ties and cultural nostalgia, Nigerians abroad have sent home billions of dollars, cushioning households and helping many weather difficult times. 

Yet the story of remittances has largely been one of consumption, not sustainable growth. Much of the money vanished into daily survival, often through informal routes, while the vast potential of structured diaspora capital for national development remained untapped.

The Central Bank of Nigeria (CBN) now seems determined to rewrite that story. In recent months, it has introduced policies aimed not only at boosting inflows but at transforming remittances into a formal, investment-driven engine of stability. 

With tools such as the Non-Resident Nigerian Ordinary and Investment Accounts (NRNOA/NRNIA), the Non-Resident Bank Verification Number (NRBVN), and tighter International Money Transfer Operator (IMTO) guidelines, the apex bank is signaling a bold shift—from remittances as household lifelines to remittances as capital for growth. 

Its ambition of attracting $1 billion in monthly diaspora remittances is more than a target; it is an audacious declaration that Nigeria seeks to become a global hub for diaspora investment.

At the heart of this strategy are the NRNOA and NRNIA. The former provides a regulated, convenient channel for everyday remittances in naira and foreign currencies, cutting out the costly informal networks that once dominated. 

The latter, the NRNIA, goes even further by creating structured pathways for diaspora investments in mortgages, pensions, insurance, and Nigeria’s financial markets. By guaranteeing full repatriation of proceeds under existing rules, the CBN is deliberately courting trust. 

And in a global financial system where trust is the ultimate currency, such assurances matter greatly. The challenge of access has also been tackled. For years, the requirement of physical presence made securing a BVN impossible for many Nigerians abroad. 

The new digital Non-Resident BVN finally removes that barrier, even though it comes at a cost of about $50. While some may balk at the fee, the opportunity far outweighs the price of exclusion. For a diaspora community long fenced out, this is a long-awaited doorway in.

The IMTO reforms reflect similar pragmatism. By restricting services to inbound transfers and ensuring payouts in naira, the CBN is protecting liquidity while keeping inflows within the formal economy. 

Allowing operators to quote exchange rates on a willing seller–willing buyer basis introduces transparency and competitiveness, drawing more Nigerians away from shadowy parallel markets. The exclusion of fintechs from IMTO licensing has sparked debate, but the regulator may be betting on stability over experimentation in a sector that demands strict oversight.

Early signs suggest the measures are bearing fruit. Official reports showed a $553 million inflow in July 2024—the highest on record—representing a 130 percent year-on-year surge. Confidence is shifting gradually towards formal systems. 

Sustained, such inflows could strengthen Nigeria’s fragile foreign exchange reserves, deepen liquidity in capital markets, and lower the high cost of remittances that continues to exceed the global average. Yet the most profound shift is not numerical but philosophical. 

These reforms are about more than chasing dollars; they are about redefining the relationship between Nigeria and its diaspora. Rather than treating remittances as acts of charity or family duty, the CBN is positioning them as instruments of nation-building. 

Nigerians abroad are being asked to see themselves not merely as senders of money, but as strategic investors in the country’s future. The stakes could not be higher. With more than 15 million citizens abroad, Nigeria sits at the heart of Sub-Saharan Africa’s remittance economy. 

In some years, diaspora inflows have even surpassed oil revenues. If only a fraction of this wealth is converted into productive, long-term capital, Nigeria’s financial landscape could be reshaped. But success will depend on more than policy design. 

It will require political stability, investor protection, and unwavering consistency in government signals. The diaspora will not risk hard-earned savings in a system that shifts with every gust of political wind.

CBN’s reforms are bold and timely. But their success now rests on trust and execution. If they work, the narrative of remittances will shift—from consumption to capital, from emergency relief to structural development. 

The target of $1 billion monthly may well be achieved, but more importantly, it represents a shared vision where remittances become investments in Nigeria’s prosperity. The choice before the diaspora is stark: to keep sending money informally and watch it disappear into short-term survival, or to embrace formal channels and help lay the foundations of a stronger, more resilient Nigeria. 

The government has laid down the rails. It is now for Nigerians abroad to decide whether their remittances will remain fleeting lifelines or become the enduring engine of a nation’s growth.

Abdulrasheed Musa Kofa is a PRNigeria Fellow. He can be reached via: musaabdulrasheed83@gmail.com.