The Senate has commended the Central Bank of Nigeria (CBN) for encouraging developments in the Nigerian financial and monetary landscape over the past six months.
The commendation was made by the Senate Committee on Banking, Insurance, and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East), during a statutory engagement with the Governor of the apex bank, Yemi Cardoso.
In his opening remarks, Senator Abiru emphasised the CBN’s role in shaping macroeconomic stability and maintaining a sound financial system.
He noted that the engagement was crucial for promoting transparency, ensuring adherence to statutory mandates, and facilitating effective policy communication.
According to him, the CBN’s financial and monetary policies have significantly improved the Nigerian economy over the last six months.
He stated: “Since our last meeting in December 2024, there have been encouraging developments in the Nigerian financial and monetary landscape. These include a moderation in the inflation rate beginning in January 2025, down to 22.97% in May from 23.71% in April; a gradual accretion to external reserves; and relative stability in the exchange rate, with a significant convergence between the official and parallel market rates.
“These outcomes reflect improved confidence in the foreign exchange market, supported by the Bank’s reform measures such as the FX Matching System and FX Code, designed to deepen market transparency and discipline.
“This committee also commends the CBN’s Monetary Policy Committee for maintaining the Monetary Policy Rate at 27.50% during its February and May 2025 meetings—marking a deliberate pause from the rate hikes witnessed in 2024, and signalling a more balanced approach to managing inflation while supporting economic growth.
“The committee acknowledges the CBN’s recent limited but flexible regulatory forbearance granted to Deposit Money Banks as part of its support for the ongoing recapitalisation exercise. While carefully crafted to avoid systemic risk, this policy reflects a pragmatic approach by the Bank to ease transitional burdens on financial institutions.
“In addition, the renewal of the bilateral currency swap agreement between Nigeria and China is commendable. This reinforces bilateral trade settlements in local currencies and aligns with the Bank’s broader strategy to diversify Nigeria’s external reserves and reduce dependence on the U.S. dollar.”
“The committee also notes the launch of the Non-Resident Bank Verification Number (NRBVN) framework by the CBN—a step aimed at improving Know-Your-Customer (KYC) standards for Nigerians and account holders abroad.
This initiative is critical for expanding the reach of formal banking services and ensuring the financial system’s integrity in an increasingly globalised economy.”
However, Senator Abiru noted that there are still areas for improvement, which he said would be discussed with the CBN Governor during an executive session.
Before the session, the CBN Governor outlined the gains made through the apex bank’s financial and monetary policies over the past six months, several of which are aligned to achieve a $1 trillion GDP by 2030.
“To support the vision for a $1 trillion GDP by 2030, the Bank initiated a forward-looking recapitalisation of the banking sector as a potent catalyst for driving this vision,” he said.
