CBN Reforms Bear Fruit as Inflation Drops to 15.06%; 32 Banks Meet Recapitalization Targets

Our Reporter 

ENUGU, Nigeria – The Central Bank of Nigeria (CBN) showcased a resurgent economy at its "Special Day" during the 37th Enugu International Trade Fair on Friday, revealing significant milestones in its reform agenda, including a sharp decline in inflation and a robust banking sector.

Speaking on behalf of the Bank’s management, Mrs. Sidi Ali Hakama, Acting Director of Corporate Communications, announced that the CBN’s tight monetary policy has successfully steered headline inflation down from a 2024 peak of 34.8% to 15.06% as of February 2026.

Banking Sector Resilience and Global Recognition

The event comes just days before the March 31, 2026, bank recapitalization deadline. Mrs. Hakama disclosed that the exercise has seen "positive progression," with 32 banks already meeting the new capital requirements. Notably, 28% of these investments originated from foreign sources, which the Bank views as a massive vote of confidence in Nigeria's financial stability.

The Governor Olayemi Cardoso-led administration's "orthodox" approach—focusing on transparency and market-driven exchange rates—recently earned the CBN the prestigious "Central Bank of the Year 2026" award from the Central Banking Awards Committee in London.

"Our fight against inflation has been steadfast," Hakama stated. "We have seen an increase in external reserves from less than $10 billion to $50.45 billion, all while maintaining our focus on achieving single-digit inflation in the near term."

Looking Ahead: The 2026 Vision

The CBN outlined its strategic priorities for the remainder of the year, which include:

Transitioning to Inflation Targeting: Moving toward a more transparent, rules-based monetary system.

Modernizing Payments: Launching a new "Payments System Vision" to lead regional digital and cross-border transactions.

Currency Integrity: A stern warning against the "spraying, hawking, or mutilating" of the Naira, described by Hakama as a "critical symbol of national identity."

The "CBN Special Day" concluded with an invitation for fairgoers to visit the CBN Pavilion, where officials are providing real-time assistance on consumer protection and the proper handling of the national currency."

ECCIMA Calls for Lower Interest Rates

While applauding the CBN’s return to the Trade Fair circuit after a two-year hiatus, the President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Engr. Nnanyelugo Onyemelukwe, urged the regulator to balance inflation-fighting with the survival of local businesses.

In his address, Onyemelukwe acknowledged the recent reduction of the Monetary Policy Rate (MPR) from 27% to 26.5% in February 2026 but argued that the cost of borrowing remains a hurdle for Micro, Small, and Medium Enterprises (MSMEs).

Key Concerns Raised by ECCIMA:

High Cost of Credit: Calls for an "aggressive push" to eventually bring interest rates to single digits.

MSME Protection: Advice to ensure that high cash reserve requirements (currently at 45%) do not stifle productivity.

Indigenous Growth: A plea for the CBN to adopt more sustainable intervention schemes to save the industrial sector from "glaring cringe."