Market News

Nigeria’s financial ecosystem was sailing through a tempest when Olayemi Cardoso took over as Governor of the Central Bank of Nigeria (CBN) on September 22, 2023.

At the same time, concerns about the transparency and effectiveness of some areas of the financial system had weakened confidence.

Cardoso, therefore, had his job automatically cut out for him.

He needed to hurriedly sail the nation’s monetary policy wing from troubled to calmer waters.

He had to tackle several problems at once; from stabilising the naira and controlling inflation to strengthening banks and restoring confidence in the financial system.

Nearly three years later, financial experts and other stakeholders say the apex bank’s reform programme has produced appreciable changes across banking, foreign exchange, payments, consumer protection, financial markets and external reserves.

However, it must be hurriedly stated that the reforms do not mean that all of Nigeria’s economic problems have disappeared.

In fact, Nigerians still contend with high living costs, while businesses continue to complain about financing costs and other operating challenges threatening to cripple them.

But beneath these difficulties, the apex bank has been making changes designed to strengthen the financial system and make it more transparent, better regulated and more capable of supporting economic growth.

President Bola Tinubu has publicly commended Cardoso’s leadership of the CBN, while international recognition has also followed, including the Central Bank of the Year Award by Central Banking, London.

Rebuilding the banks from the inside

One of the biggest milestones came on March 31, 2026, when the CBN concluded the latest banking recapitalisation exercise.

In simple terms, recapitalisation means requiring banks to have more financial strength of their own so they can withstand losses, support bigger businesses and continue lending during difficult economic periods.

>span class="s1">For experts, the significance goes beyond the amount of money raised and that is because a bank with a stronger capital base has a bigger cushion against unexpected losses. It is also better placed to finance major projects and businesses without putting its own survival at risk.

>span class="s1"

>span class="s1"

>span class="s1">Another development came in February 2026, when the CBN approved the Bank of Industry’s Non-Interest Banking Window.

>span class="s1">Tackling distortions in the foreign exchange market

Perhaps no area has attracted as much public attention during Cardoso’s tenure as the foreign exchange market.

On May 15, 2026, the apex bank launched the fourth edition of its Foreign Exchange Manual.

>span class="s1">Licensed BDCs were given structured access to foreign exchange through authorised dealer banks, while the FX BDC Purchase Tracker was introduced to improve monitoring and compliance.

On March 25, 2026, International Oil Companies were permitted to repatriate 100 per cent of their export proceeds through authorised dealer banks.

For the CBN, the measure was part of efforts to liberalise the foreign exchange market and improve the flow of foreign currency through the formal banking system.

On March 24, 2026, new naira-settlement requirements were introduced for International Money Transfer Operators.

Moving Nigeria towards a safer digital payments system

Nigeria’s payments system has changed dramatically over the years, with millions of transactions now taking place electronically through bank transfers, mobile channels, cards and Point-of-Sale terminals.

But rapid digital growth has also created new risks, particularly fraud and cybercrime.

Its pillars include interoperability, security, financial inclusion, innovation, trust and collaboration.

In layman’s terms, the aim is to make it easier for different payment platforms to work together while ensuring that transactions are safe and reliable.

>span class="s1">Agent banking has also received tighter regulation.

Under revised guidelines issued on October 6, 2025, banks and other financial institutions were required to strengthen consumer protection, agent supervision, transaction controls and location requirements.

From July 1, 2026, customers also received greater control over instant-payment preferences and transaction limits, alongside stronger device authentication, identity verification and real-time fraud monitoring.

Fighting fraud and protecting bank customers

As banking becomes increasingly digital, the nature of financial crime is changing.

On March 12, 2026, the apex bank strengthened the Bank Verification Number and watchlist framework.

>span class="s1">On March 30, the CBN deployed a Cybersecurity Self-Assessment Tool to enable regulated institutions to examine their own cyber-defences and identify weaknesses.

New cash-withdrawal thresholds were introduced, while restrictions and charges on cash deposits were removed.

Modernising the machinery of monetary policy

Another less visible but important part of the reforms has been the modernisation of Nigeria’s financial markets.

On April 17, 2026, the CBN introduced the Nigerian Overnight Financing Rate, or NOFR. The NOFR is a transaction-based benchmark designed to give the market a clearer reference point for short-term borrowing costs.

For ordinary Nigerians, the technical language may sound distant. But benchmarks such as NOFR matter because they help determine how changes in monetary policy eventually affect the cost of money in the wider economy.

Reserves cross the $50 billion mark

Perhaps one of the strongest indicators of the changes in Nigeria’s external position has been the increase in foreign exchange reserves.

In 2026, Nigeria’s external reserves crossed the $50 billion mark.

>span class="s1">Foreign reserves are important because they provide the country with foreign currency that can be used to meet international obligations and support confidence in the economy.

Locally sourced gold, refined to international London Bullion Market Association Good Delivery standards, was added to Nigeria’s reserve assets.

Reforms tested by economic realities

Bank recapitalisation has sought to make lenders stronger. Foreign exchange reforms have focused on transparency and market structure. Payments reforms have targeted security and inclusion. Cybersecurity measures have responded to the rise of digital fraud, while changes in financial-market operations are designed to improve monetary-policy transmission.

However, the achievements should be viewed alongside the realities faced by Nigerians and businesses.

A stronger banking system does not automatically mean cheaper loans. Higher foreign reserves do not by themselves eliminate inflation. Better payment systems do not end cybercrime overnight.

For Cardoso, the period since September 2023 has been an exercise in rebuilding and restructuring the financial system.

As the CBN moves deeper into the next phase of the reforms, the emphasis is likely to shift from putting new rules in place to ensuring that those rules work effectively across the banking and financial system.

For now, the Cardoso years have produced a substantial list of changes across virtually every major part of Nigeria’s financial architecture, from the bank branch to the PoS terminal, from the foreign exchange market to the nation’s reserves.