CBN economic reforms drive inflation drop, reserve growth and investor confidence, officials say at Enugu trade fair

The Central Bank of Nigeria on Friday signalled a gradual economic reset, attributing improvements in inflation, foreign reserves, and investor confidence to its ongoing monetary and financial sector reforms.

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The Acting Director of Corporate Communications and Investor Relations, Sidi Hakama, disclosed this during the CBN Special Day at the 37th Enugu International Trade Fair, stating that the bank’s policies were delivering measurable outcomes.

Hakama said headline inflation declined from a peak of 34.8 per cent in late 2024 to 15.06 per cent by the end of February 2026, describing the trend as evidence of stabilising prices.

She added that external reserves have strengthened significantly, rising from less than $10 billion to $50.45 billion, while capital inflows surged by nearly 200 per cent between 2023 and 2025.

“These gains are driven by reforms under Olayemi Cardoso, including a more transparent foreign exchange regime,” Hakama said, noting that the new FX framework has simplified trade and investment processes and improved market liquidity.

The apex bank is also transitioning to an inflation-targeting framework aimed at sustaining price stability through a forward-looking and rules-based monetary policy system.

Hakama said the shift would help anchor market expectations and cushion the economy against external shocks.

On the banking sector, she reported continued progress in the recapitalisation programme, with 32 banks meeting the new capital requirements ahead of the March 31, 2026 deadline.

Approximately 28 per cent of the investments, she noted, originated from foreign sources, reflecting renewed confidence in the financial system.

The reforms have attracted international recognition, with the central bank receiving the Central Bank of the Year 2026 Award.

However, the President of the Enugu Chamber of Commerce Industry Mines and Agriculture, Nnanyelugo Onyemelukwe, cautioned that high interest rates could limit the impact of the reforms.

“Although the Monetary Policy Rate was recently reduced from 27.0 per cent to 26.5 per cent, borrowing costs remain high,” he said, urging policymakers to drive rates towards single digits to improve access to credit and boost economic productivity.

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The CBN economic reforms, officials said, underscore a clear commitment to stabilising the economy, enhancing investor confidence, and laying a sustainable foundation for long-term growth.