NOSA EGHAGHA
ABUJA, Nigeria – Senate on Thursday demanded full transparency from the Central Bank of Nigeria (CBN) over an alleged failure to remit ₦1.44 trillion in operating surplus—an inquiry that came just as the apex bank declared that the Nigerian economy had entered its most stable period in more than ten years.
During a statutory briefing before the Senate Committee on Banking, Insurance and Other Financial Institutions, Committee Chairman Senator Tokunbo Abiru set the tone early, stressing that the Auditor-General’s query on the missing funds could not be swept aside.
“This requires a full, clear and documented response,” Abiru insisted, adding that accountability remained the backbone of public trust in economic management.
While commending the CBN for stabilising the foreign-exchange market and slowing inflation, he maintained that such achievements must go hand-in-hand with financial transparency. The Senate, he said, expected the CBN to “explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.”
CBN Governor Olayemi Cardoso, who led the bank’s delegation, used the briefing to present a sweeping assessment of the country’s economic turnaround. He described Nigeria as being on a “renewed path of macroeconomic stability,” crediting recent gains to bold policy reforms, FX liberalisation and tighter liquidity controls implemented since mid-2025.
According to Cardoso, headline inflation had fallen for seven straight months, dropping from 34.6% in November 2024 to 16.05% in October 2025—the sharpest disinflation streak seen in more than a decade. Food inflation, he added, eased to 13.12%, supported by stronger supply chains and a more predictable exchange rate environment.
He said the foreign-exchange landscape had undergone a “fundamental transformation.” Speculative attacks had eased, arbitrage windows had closed, and the parallel-market gap had narrowed to less than 2%, compared to over 60% a year earlier. As of November 26, the naira stood at ₦1,442.92/$ at the Nigerian Foreign Exchange Market—stronger than the average of ₦1,551 recorded in the first half of the year.
Cardoso also disclosed a dramatic rebound in external reserves, now at $46.7 billion, the highest in nearly seven years and enough to cover more than ten months of imports.
He highlighted surging investor confidence, pointing to monthly diaspora remittances that have tripled to $600 million, and foreign capital inflows of $20.98 billion in the first ten months of 2025—70% higher than last year and more than quadruple the 2023 figure. He confirmed that the CBN had “fully cleared the $7 billion verified FX backlog.”
On banking-sector stability, Cardoso offered a positive assessment of the ongoing recapitalisation drive. Twenty-seven banks have raised new capital, with sixteen already meeting or surpassing regulatory requirements ahead of the March 31, 2026 deadline. He linked the reform to improvements in ATM cash availability, digital payment oversight and stronger cybersecurity safeguards.
But the Senate was not done probing.
Senator Abiru requested clarity on several pressing issues, including the sustained 45% Cash Reserve Ratio (CRR), the 75% CRR imposed on non-TSA public deposits, FX forward settlements, widespread circulation of mutilated naira notes, excessive bank charges and recurring failed electronic transactions. He also raised concerns about compliance by CBN subsidiaries and asked for a status report on the Financial Services Regulatory Coordinating Committee, saying stronger coordination was essential for public trust.
After the open session, the meeting proceeded behind closed doors for further deliberations.
