CBN wins global award for reforms, economic stability

The Central Bank of Nigeria has been named Central Bank of the Year 2026 by the Central Banking Awards Committee in London for restoring macroeconomic stability, strengthening the foreign exchange market, and rebuilding investor confidence.

The recognition follows Nigeria’s severe economic challenges in 2023, including double-digit inflation, a sharply weakened currency, depleted foreign reserves, and a $7 billion backlog in unmet foreign exchange obligations.

Following the appointment of Olayemi Cardoso as governor in October 2023 by President Bola Ahmed Tinubu, the CBN introduced sweeping reforms.

The apex bank dismantled the multiple exchange-rate system and implemented a “willing-buyer, willing-seller” FX model supported by an electronic matching system, improving transparency and curbing market distortions.

The reforms narrowed the gap between official and parallel market exchange rates to below 2% by late 2025.

Nigeria’s foreign reserves rose to $46.7 billion by November 2025, the highest level in almost seven years, supported by improved FX inflows, stronger non-oil exports, and renewed investor confidence.

Inflation, which peaked at 34.8% in December 2024, fell to 15.1% by January 2026 due to tight monetary policy and better coordination of economic policies.

The CBN also strengthened internal governance, established a dedicated compliance department, and implemented digital initiatives, including artificial intelligence tools.

Banking sector reforms included recapitalisation requirements, with over 30 banks accessing new capital to improve financial system resilience.

The apex bank aligned regulatory standards with Basel III, enhanced risk-based supervision, and improved liquidity monitoring.

Nigeria’s removal from the Financial Action Task Force grey list in 2025 reflected improved anti-money laundering controls and stronger regulatory oversight.

Analysts noted that investor sentiment improved significantly, with Nigeria’s 2025 Eurobond issuance attracting subscriptions more than five times the offer size.

The awards committee praised the CBN’s decisive, coordinated policies and its commitment to macroeconomic stability, marking Nigeria’s re-emergence on the global financial stage.

The award positions the CBN among leading central banks worldwide and underscores the impact of its ongoing reforms on Africa’s largest economy.