By Nathaniel Zaccheaus, Abuja
The Senate yesterday placed the Central Bank of Nigeria (CBN) under firm scrutiny as it demanded a comprehensive explanation for the alleged non-remittance of N1.44 trillion in operating surplus, even as the apex bank declared that Nigeria’s economic recovery had entered its most stable and promising phase in more than a decade.
The Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Tokunbo Abiru, opened its statutory engagement with a pointed call for transparency, insisting that public trust in monetary governance hinged on an unambiguous response to the Auditor-General’s query on the controversial surplus funds.
Abiru, while acknowledging the CBN’s achievements in stabilising the foreign-exchange market and driving down inflation, stressed that such progress must be matched by uncompromising accountability.
He said the Senate expected a complete account of the facts, corrective actions taken, and institutional safeguards to prevent future breaches.
CBN Governor Olayemi Cardoso, in his submission, presented a detailed review of the economy, asserting that Nigeria was witnessing renewed macroeconomic stability across all major indicators.
He stated that the combination of bold monetary reforms, foreign-exchange market liberalisation, and disciplined liquidity management since mid-2025 had produced outcomes that have attracted international recognition.
According to him, headline inflation has declined for seven consecutive months—from 34.6 per cent in November 2024 to 16.05 per cent in October 2025—representing the steepest and most sustained disinflation in more than ten years.
Food inflation, he noted, had moderated to 13.12 per cent, buoyed by improved supply conditions and a more predictable exchange-rate regime.
Cardoso described the FX market as “fundamentally transformed,” noting that speculative attacks and arbitrage opportunities had largely been eliminated.
The spread between the official and parallel markets, he said, had tightened to below two per cent, compared to over 60 per cent a year earlier.
He reported that the naira had demonstrated remarkable stability, appreciating to N1,442.92 per dollar at the Nigerian Foreign Exchange Market (NFEM) as of November 26—stronger than the N1,551 average recorded in the first half of the year.
He credited the gains to improved liquidity, the deployment of the Electronic FX Matching System and the implementation of the Nigeria FX Code.
A significant highlight of his presentation was the surge in external reserves, which rose to $46.7 billion as of November 14—Nigeria’s highest level in nearly seven years and enough to cover 10.3 months of imports.
Diaspora remittances, he added, had tripled from $200 million to about $600 million monthly. In comparison, foreign capital inflows reached $20.98 billion in the first ten months of 2025—70 per cent higher than in 2024 and more than quadruple the 2023 figure.
Cardoso also confirmed that the apex bank had fully cleared the $7 billion verified FX backlog, calling it a decisive action that restored Nigeria’s market credibility and re-anchored investor sentiment.
The balance-of-payments deficit, he said, had narrowed by over 90 per cent, with the current account strengthened by rising non-oil exports and favourable trade conditions.
He noted that the reforms had attracted global endorsements, including S&P’s upgrade of Nigeria’s outlook from Stable to Positive, Fitch’s affirmation of the sovereign rating, and Nigeria’s removal from the Financial Action Task Force’s Grey List.
Addressing banking-sector stability, Cardoso said the recapitalisation programme was progressing smoothly. He reported that 27 banks had raised fresh capital, with 16 already meeting or exceeding the new thresholds ahead of the March 31, 2026, deadline.
He also cited improvements in ATM cash availability, oversight of digital payments, cybersecurity protocols, and enforcement actions against erring institutions.
However, the Senate pressed for further clarity on key policy choices.
Abiru requested explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-TSA public-sector deposits, FX forward settlements, the circulation of mutilated naira notes, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also sought a detailed update on the Financial Services Regulatory Coordinating Committee’s activities in 2025, arguing that stronger regulatory coordination was vital to sustaining public confidence.
Cardoso assured lawmakers that the CBN would maintain transparency and evidence-based policymaking.
He projected a positive outlook for 2026, with further moderation in inflation, continued FX stability and a resilient banking sector capable of supporting long-term growth.
He emphasised that the reforms implemented in 2025 had laid a stronger macroeconomic foundation and that close alignment between monetary and fiscal authorities would be essential to consolidating gains.
The session later dissolved into a closed-door meeting, which was still in progress at the time of filing this report.
