The Central Bank of Nigeria (CBN) has been named “Central Bank of the Year” at the 2026 Central Banking Awards, a recognition that comes after a marked change in the country’s economic policy. This distinction follows a series of reforms initiated since late 2023 by the governor of the apex bank, Olayemi Cardoso, including the abandonment of several unconventional interventions, opting for monetary tightening and greater transparency in the management of the foreign exchange market.
Nigeria was previously facing high inflation, a shortage of foreign currency, and a significant distortion in the exchange rate. The exchange market reform, marked by the unification of different segments and the introduction of a more market-oriented system, helped reduce the gap between the official and parallel rates to less than 2%, compared to over 60% previously.
At the same time, the CBN raised its key interest rate to 27.5% in 2024 to contain inflationary pressures, before slightly lowering it to 26.5% in early 2026. Inflation, which had peaked at 34.8% at the end of 2024 following the liberalization of prices and the removal of certain subsidies, fell to 15.1% in January 2026.
Foreign exchange reserves also increased, reaching $46.7 billion at the end of 2025, supported by a resurgence in capital inflows and improved liquidity in foreign currencies. The International Monetary Fund noted a stabilization of the exchange market and a strengthening of confidence.
In parallel, the central bank launched a recapitalization of the banking sector and strengthened supervision by aligning with Basel III international standards. More than 30 institutions raised new funds before the deadline set for 2026.
Financially, the country regained more favorable access to international markets, with a $2.35 billion eurobond issuance in 2025, which was heavily subscribed. Fitch Ratings and Moody’s upgraded the sovereign rating, while Nigeria was removed from the Financial Action Task Force grey list.
