CBN Earns Senate Praise Over Reform Measures, Mid-Year Progress

The Central Bank of Nigeria (CBN) has received praise from the Senate for what it called positive changes in the country’s monetary and financial system during the first half of 2025.
The praise was given during a statutory meeting at the National Assembly between the CBN Governor, Mr. Yemi Cardoso, and the Senate Committee on Banking, Insurance, and Other Financial Institutions.

In his opening remarks, committee chairman Adetokunbo Abiru praised the apex bank for the consistent improvement in macroeconomic indices, which he said indicated greater stability and confidence in the Nigerian economy.

“The Nigerian financial and monetary landscape has seen encouraging developments since our last meeting in December 2024,” Abiru said.

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He mentioned the slow accretion of foreign reserves, the relative stability of the exchange rate, especially the closing gap between the official and parallel market prices, and the decrease of inflation from 23.71% in April 2025 to 22.97% in May.

“These results demonstrate increased trust in the foreign exchange market, which is bolstered by the Bank’s reform initiatives like the FX Matching System and FX Code, which aim to enhance market discipline and transparency,” he stated.

Senator Abiru characterized the CBN’s Monetary Policy Committee’s (MPC) decision to keep the MPR at 27.50% during both its February and May meetings as “a deliberate pause to the rate hikes witnessed in 2024, signalling a more balanced approach in managing inflation and supporting growth.” The committee also commended the MPC for this action.

The Senate also recognized the apex bank’s approach to recapitalization, including the regulatory forbearance it offered Deposit Money Banks, which it described as having “pragmatic flexibility.”

“This policy reflects a pragmatic approach by the Bank to ease transitional burdens on financial institutions, even though it was carefully crafted to avoid systemic risk,” Abiru stated.
The extension of Nigeria and China’s bilateral currency swap arrangement, which permits trade settlements in local currencies, was another policy that the committee emphasized. According to Abiru, the action would support CBN’s overarching goal of diversifying Nigeria’s external reserves and lessen the country’s dependency on the US currency.

The committee also applauded the CBN’s implementation 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.

“In an increasingly globalized economy, this initiative is essential for ensuring financial system integrity and broadening the reach of formal banking services,” Abiru said.

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Even so, he noted that there was still room for improvement in a few areas, which will be discussed during the executive session with the CBN governor.

During his address, Mr. Cardoso listed several policy initiatives and accomplishments that he oversaw, emphasizing how they contributed to macroeconomic stabilization and sustained expansion.

He pointed out that the federal government’s objective of having a $1 trillion economy by 2030 was strategically in line with several of the bank’s recent initiatives.

The CBN Governor stated, “The Bank initiated 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.”

In order to boost investor confidence and economic resilience, Cardoso reaffirmed the bank’s dedication to institutional reforms, policy discipline, and strategic alliances.

The Senate expressed satisfaction with the CBN’s reform trajectory throughout the engagement, which was a rare instance of the legislative and the central bank aligning. However, the Senate also emphasized the necessity for ongoing oversight and progress.