Abuja:The Central Bank of Nigeria (CBN) has emphasized the positive impact of its foreign exchange reforms and banking sector recapitalization on the country’s financial stability. Dr. Muhammad Abdullahi, the CBN Deputy Governor for Corporate Services, addressed these developments during the 38th Seminar for Finance Correspondents and Business Editors Association of Nigeria (FICAN) held in Abuja on Tuesday.
According to News Agency of Nigeria, the reforms were implemented to tackle significant economic challenges faced by the current CBN leadership since 2023, aiming to restore stability, rebuild confidence, and refocus the bank on its core mandate. Abdullahi praised financial journalists for their critical examination of these reforms and their role in clarifying their implications for businesses and the public.
Abdullahi noted that the foreign exchange market in Nigeria was highly controlled and fragmented, with various windows operating alongside a parallel market in 2023. The gap between official and parallel market exchange rates averaged over 60% in 2022, occasionally exceeding 100%, complicating pricing and business planning. The World Bank estimated that this exchange-rate regime cost Nigeria approximately 3% of its GDP in 2022.
The CBN consolidated foreign exchange windows in June 2023 and lifted restrictions on 43 import categories. The bank reviewed and settled valid foreign exchange claims worth more than five billion dollars, enhancing market transparency and reducing the gap between official and parallel rates to under 2% from 68.2% in early 2023. Foreign exchange inflows diversified, with autonomous sources contributing $7.3 billion of the $10.8 billion recorded in July.
Abdullahi highlighted that inflation peaked at 34.8% in December 2024 but moderated to 15.43% by July 2026, with real GDP growth reaching 4.43% in the second quarter of 2026, driven by non-oil activities. He acknowledged that challenges for households and businesses persist, but the CBN remains focused on sustaining gains and deepening investment sources.
On recapitalization, Abdullahi stated that 33 banks met revised capital requirements, raising N4.65 trillion by the end of the two-year program, essential for supporting Nigeria’s goal of a one trillion dollar economy by 2030. He stressed the importance of strong bank capital for financing infrastructure and economic growth.
Abdullahi urged banks to improve corporate governance and risk management to protect stakeholders. The CBN will continue monitoring governance, liquidity, and risk management within the banking sector, emphasizing the importance of cybersecurity and data protection.
He concluded that the benefits of recapitalization should extend beyond stronger balance sheets to improved services and lending, advocating for increased financial access for rural communities, women, and young entrepreneurs.
Mrs. Hakama Sidi-Ali, Director of Stakeholder Engagement and Institutional Relations at CBN, commended the media for its role in strengthening communication between the bank and the public. She highlighted the media’s significant contribution to the bank’s communication efforts, reflected in several awards received by the CBN.
Michael Akuka, the new Director of Corporate Communications, noted the banking sector’s new phase post-recapitalization, emphasizing the importance of translating stronger balance sheets into a more robust financial system. He encouraged financial journalists to delve deeper into monetary and financial developments to provide comprehensive coverage.