From Adesuwa Tsan, Abuja
The Senate has commended the Central Bank of Nigeria (CBN) over what it described as encouraging developments in the financial and monetary system in the first half of 2025.
The commendation came during a statutory engagement between the Senate Committee on Banking, Insurance and Other Financial Institutions and the CBN Governor, Mr. Yemi Cardoso, at the National Assembly.
Chairman of the committee, Adetokunbo Abiru, in his opening remarks, lauded the apex bank for the steady progress made in macroeconomic indicators, which he said signalled increased stability and confidence in the Nigerian economy. “Since our last meeting in December 2024, there have been encouraging developments in the Nigerian financial and monetary landscape.” Abiru cited a moderation in inflation from 23.71 percent in April 2025 to 22.97 percent in May, gradual accretion to external reserves, and relative exchange rate stability, particularly a narrowing gap 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,” he said.
The committee also praised the CBN’s Monetary Policy Committee (MPC) for maintaining the Monetary Policy Rate at 27.50 percent in both its February and May meetings—a move Senator Abiru described as “a deliberate pause to the rate hikes witnessed in 2024, signaling a more balanced approach in managing inflation and supporting growth.
The Senate further acknowledged what it termed “pragmatic flexibility” in the apex bank’s approach to recapitalisation, particularly its limited but flexible regulatory forbearance granted to Deposit Money Banks.
“This policy, while carefully crafted to avoid systemic risk, reflects a pragmatic approach by the Bank to ease transitional burdens on financial institutions,” Abiru said.
Another policy the committee highlighted was the renewal of the bilateral currency swap agreement between Nigeria and China, which allows for trade settlements in local currencies. Abiru said the move would help reduce Nigeria’s reliance on the U.S. dollar and align with CBN’s broader objective of diversifying the country’s external reserves.
In addition, the committee welcomed the CBN’s introduction of the Non-Resident Bank Verification Number (NRBVN) framework, which it said would improve Know-Your-Customer (KYC) processes for Nigerians and account holders living abroad.
“This initiative is critical for expanding the reach of formal banking services and ensuring financial system integrity in an increasingly globalized economy.” Abiru added that while progress had been made, some areas still require improvement, which would be addressed in the executive session with the CBN governor.
In his presentation, Mr. Cardoso outlined a number of policy interventions and achievements under his leadership, highlighting their contribution to macroeconomic stabilIsation and long-term growth.
He noted that many of the bank’s recent actions were strategically aligned with the federal government’s goal of achieving a $1 trillion economy by 2030.
“To support the vision for the $1 trillion GDP by 2030, the Bank initiated a forward-looking recapitalisation of the banking sector as a potent catalyst for driving this vision,” the CBN Governor said.
Cardoso reiterated the bank’s commitment to policy discipline, institutional reforms, and strategic partnerships aimed at improving investor confidence and economic resilience.
The engagement marked a rare moment of alignment between the legislature and the central bank, as the Senate expressed satisfaction with the CBN’s reform trajectory while also emphasising the need for continuous improvement and oversight.