The Senate praised the Central Bank of Nigeria (CBN) for what it called positive changes in the country’s monetary and financial system during the first half of 2025.
The praise was given before the National Assembly at a statutory meeting between the Senate Committee on Banking, Insurance, and Other Financial Institutions and Mr. Yemi Cardoso, the governor of the CBN.
Adetokunbo Abiru, the committee chairman, praised the apex bank in his opening remarks for the consistent improvement in macroeconomic indicators, which he said indicated greater stability and confidence in the Nigerian economy.
“There have been encouraging developments in the Nigerian financial and monetary landscape since our last meeting in December 2024,” Abiru said.
He pointed to a slow accretion to foreign reserves, a moderate rate of inflation (from 23.71% in April 2025 to 22.97% in May), and relative exchange rate stability, especially a closing gap between official and parallel market prices.
“The FX Matching System and FX Code, two reform initiatives the Bank has implemented to increase market transparency and discipline, have contributed to these results, which show increased confidence in the foreign exchange market,” he said.
The Monetary Policy Committee (MPC) of the CBN was also commended by the committee for keeping the MPR at 27.50% during its February and May meetings. Senator Abiru characterized this as “a deliberate pause to the rate hikes witnessed in 2024, signalling a more balanced approach in managing inflation and supporting growth.”
The Senate also recognized what it called “pragmatic flexibility” in the apex bank’s recapitalization strategy, including the regulatory forbearance that Deposit Money Banks were permitted, which was both flexible and limited.
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“The Bank has taken a practical approach to easing the transitional burdens on financial institutions through this policy, which has been carefully crafted to avoid systemic risk,” Abiru stated.
The committee also emphasized the extension of Nigeria-China’s bilateral currency swap agreement, which permits local currency settlements for trade. According to Abiru, the action will lessen Nigeria’s dependency on the US currency and support the CBN’s overarching goal of diversifying the nation’s foreign reserves.
The committee also applauded the CBN’s establishment of the Non-Resident Bank Verification Number (NRBVN) framework, claiming that it will enhance Know-Your-Customer (KYC) procedures for Nigerians and foreign account holders.
According to Abiru, “this initiative is crucial for ensuring financial system integrity and broadening the reach of formal banking services in an increasingly globalized economy.”
He did, however, add that although there had been progress, there were still certain areas that needed to be improved, and that this will be discussed in the executive session with the CBN governor.
During his presentation, Mr. Cardoso listed several policy initiatives and accomplishments achieved under his direction, emphasizing how they supported long-term growth and macroeconomic stabilization.
Many of the bank’s recent initiatives, he pointed out, were strategically in line with the federal government’s objective of having a $1 trillion economy by 2030.
“The Bank started a forward-looking recapitalization of the banking sector as a potent catalyst for driving this vision in order to support the vision for the $1 trillion GDP by 2030,” the governor of the CBN stated.
Cardoso reaffirmed the bank’s dedication to institutional reforms, policy rigor, and strategic alliances that will boost investor confidence and economic resilience.
The Senate stressed the need for ongoing improvement and supervision while expressing satisfaction with the CBN’s reform trajectory, marking a rare instance of legislative and central bank concord.
