CBN wins international central banking award for coverage reforms

The Central Bank of Nigeria has been named the worldwide “Central Financial institution of the Yr” on the 2026 Central Banking Awards, following sweeping financial and structural reforms which have helped stabilise the nation’s economic system after years of coverage distortions.

This was disclosed in a press release by the Central Banking Awards Committee, obtained by The PidomNigeria on Sunday, which credited the apex financial institution’s coverage reset and institutional reforms for restoring confidence in Nigeria’s monetary system.

In accordance with the assertion, the award displays a decisive return to orthodox financial coverage, improved governance, and reforms that strengthened investor confidence and market stability.

Nigeria’s economic system had been below extreme pressure previous to the reforms, with rising inflation, weakening overseas change reserves, and widening gaps between official and parallel market change charges.

The committee famous that by 2023, inflation had climbed to 22.4 per cent, whereas overseas change liquidity deteriorated considerably, with a backlog of about $7bn in unmet obligations and a diffusion of over 60 per cent between official and parallel market charges.

It added that financial stagnation and coverage inconsistencies had pushed Nigeria from being Africa’s largest economic system in 2014 to fourth place behind South Africa, Egypt, and Algeria, whereas financial financing and subsidy-related interventions left coverage in an “unsustainable place.”

A former senior central financial institution official, whose identify was not talked about, was quoted within the assertion as saying the nation had gave the impression to be “heading the best way of Venezuela and Zimbabwe,” amid considerations over fiscal instability, foreign money depreciation, and lack of central financial institution independence.

Nonetheless, following the appointment of Olayemi Cardoso as Governor in October 2023, the apex financial institution launched into wide-ranging reforms aimed toward restoring macroeconomic stability and rebuilding credibility.

The committee acknowledged that the brand new management prioritised ending quasi-fiscal interventions, tightening financial coverage, clearing overseas change backlogs, and re-establishing institutional independence, forming the inspiration of a broader reform agenda anchored on transparency and self-discipline.

A serious element of the reforms was the overhaul of the overseas change market. The CBN changed a number of change charge home windows with a unified, market-driven system primarily based on a willing-buyer, willing-seller mannequin, whereas introducing an digital FX matching platform to enhance value discovery and transparency.

Cardoso was quoted as saying, “The naira now trades inside a slim, steady vary. The once-substantial hole between the official and parallel markets has shrunk to below 2 per cent, down from over 60 per cent.”

The assertion famous that the central financial institution additionally cleared excellent FX obligations owed to sectors resembling aviation and manufacturing, serving to to revive enterprise confidence.

On account of improved FX liquidity, stronger capital inflows, and elevated non-oil exports, Nigeria’s gross exterior reserves rose to $46.7bn by November 2025, representing the very best stage in practically seven years and offering greater than 10 months of import cowl.

The Worldwide Financial Fund, in its July 2025 Article IV evaluation, was quoted as commending the reforms, noting that the measures taken had improved market confidence and supported liquidity within the overseas change market.

On inflation, the committee acknowledged that the CBN adopted aggressive financial tightening, elevating rates of interest from 18.75 per cent in 2023 to 27.5 per cent by November 2024. Though inflation initially surged to 34.80 per cent in December 2024 following subsidy removing and foreign money liberalisation, it later declined to fifteen.10 per cent by January 2026.

Meals inflation additionally moderated to eight.9 per cent, reflecting improved value stability and tighter financial circumstances.

The easing inflation pattern enabled the apex financial institution to start a cautious coverage easing cycle, decreasing the benchmark charge to 26.5 per cent by February 2026.

Cardoso stated the financial institution remained dedicated to additional decreasing inflation, including that “the present double-digit charge can’t be acceptable,” whereas emphasising a transition in the direction of an inflation-targeting framework supported by improved knowledge and communication instruments.

Past financial coverage, the committee highlighted structural reforms within the banking sector, together with a recapitalisation programme launched in 2024 requiring banks to satisfy increased capital thresholds.

It acknowledged that greater than 33 banks had raised recent capital, with at the very least 20 already assembly the brand new necessities forward of the March 31, 2026 deadline, whereas non-compliant banks threat licence downgrade, acquisition, or liquidation.

The apex financial institution additionally strengthened supervision by transitioning in the direction of Basel III requirements to enhance threat administration and liquidity monitoring.

As well as, microfinance lending expanded by over 14 per cent, whereas digital credit score merchandise reached greater than 1.2 million small companies in 2025, supporting monetary inclusion.

On funds and digitalisation, the CBN reviewed the money administration system, launched measures to enhance ATM effectivity, and strengthened oversight of fee brokers nationwide.

The committee famous that over 12 million contactless playing cards at the moment are in circulation and that about 40 fintech corporations are supported by means of the CBN’s regulatory sandbox.

The assertion additional highlighted enhancements in governance and compliance, together with the institution of a devoted compliance division and enhanced anti-money laundering controls, which contributed to Nigeria’s removing from the Monetary Motion Process Drive gray listing in 2025.

Worldwide score businesses additionally acknowledged the influence of the reforms. Fitch upgraded Nigeria’s score from B- to B with a steady outlook in April 2025, whereas Moody’s raised its score from Caa1 to B3 in Could, citing improved fundamentals and coverage credibility.

Nigeria’s return to the worldwide capital market was additionally marked by a $2.35bn Eurobond issuance in 2025, which was oversubscribed greater than 5 occasions.

Regardless of the progress, the committee famous that challenges stay, together with sustaining disinflation, finishing banking sector recapitalisation, and strengthening institutional frameworks.

It, nevertheless, concluded that the size of reforms undertaken by the apex financial institution had been vital, with a former official stating, “What the CBN has achieved is nothing wanting exceptional.”