For what it called positive changes in the Nigerian financial and monetary system in the first half of 2025, the Senate has praised the Central Bank of Nigeria (CBN).
At the National Assembly, the Senate Committee on Banking, Insurance, and Other Financial Institutions and CBN Governor Mr. Yemi Cardoso engaged in a statutory engagement during which the praise was made.
In his opening remarks, Adetokunbo Abiru, the committee chairman, praised the apex bank for the consistent advancements in macroeconomic indicators, claiming that they indicated greater stability and confidence in the Nigerian economy.
According to Abiru, “the Nigerian financial and monetary landscape has seen encouraging developments since our last meeting in December 2024.”
Read Also: Chief Igbinedion, NAPTIP Boss Commends NDLEA’s Anti-Drug Campaign Efforts
He pointed to a slow accretion to foreign reserves, a decreasing difference between the official and parallel market rates, and a decrease in inflation from 23.71% in April 2025 to 22.97% in May.
The Bank’s reform initiatives, like the FX Matching System and FX Code, which aim to increase market transparency and discipline, have contributed to these results, which he claimed show increased confidence in the foreign exchange market.
The committee also commended the CBN’s Monetary Policy Committee (MPC) for keeping the MPR at 27.50%. 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 praised the central bank’s approach to recapitalization, citing its “pragmatic flexibility,” especially the regulatory forbearance it offered Deposit Money Banks, which was both flexible and limited.
“This policy is a practical approach by the Bank to alleviate transitional burdens on financial institutions, even though it was meticulously designed to prevent systemic risk,” Abiru stated.
The extension of the bilateral currency swap arrangement between China and Nigeria, which permits trade settlements in local currencies, was another policy that the committee emphasized. According to Abiru, the action will diversify Nigeria’s external reserves and lessen its dependency on the US currency, which is CBN’s overarching goal.
The committee also praised the CBN’s launch of the Non-Resident Bank Verification Number (NRBVN) framework, claiming it will enhance Know-Your-Customer (KYC) procedures for Nigerians and foreign account holders.
“In an increasingly globalized economy, this initiative is essential for safeguarding the integrity of the financial system and extending the reach of formal banking services,” Abiru said.
He clarified, though, that although there had been progress, there were still certain areas that needed work, which would be discussed during the executive session with the CBN governor.
Mr. Cardoso gave a presentation outlining several policy initiatives and accomplishments that he oversaw, emphasizing how they contributed to macroeconomic stabilization and sustained prosperity.
The federal government’s objective of attaining a $1 trillion economy by 2030 was strategically in line with several of the bank’s recent initiatives, he said.
“As a powerful catalyst for advancing this vision, the Bank initiated a forward-looking recapitalization of the banking sector to support the vision for the $1 trillion GDP by 2030,” the CBN Governor stated.
Cardoso reaffirmed the bank’s dedication to institutional reforms, policy rigor, and strategic alliances that strengthen economic resilience and investor confidence.
The Senate voiced satisfaction with the CBN’s reform trajectory during the engagement, emphasizing the necessity for ongoing oversight and development. This was a rare instance of the legislative and the central bank aligning.
