CbncThe Central Bank of Nigeria (CBN) has been named Central Bank of the Year 2026 by the Central Banking Awards Committee in London, in recognition of sweeping reforms that restored macroeconomic stability, strengthened the foreign exchange market and rebuilt investor confidence.
The award, announced as part of the 13th annual Central Banking Awards, highlights the CBN’s turnaround of an economy that was widely described as being on the brink of crisis in 2023.
At the time, Nigeria faced severe economic headwinds, including double-digit inflation, a sharply weakened currency, depleted foreign reserves and a backlog of about $7 billion in unmet foreign exchange obligations. The gap between official and parallel market exchange rates had widened to over 60 per cent, reflecting deep distortions in the FX market.
Following the appointment of Olayemi Cardoso as governor in October 2023 by President Bola Ahmed Tinubu, the apex bank embarked on an aggressive reform programme anchored on orthodox monetary policy, institutional transparency and market-driven frameworks.
A key factor behind the global recognition was the CBN’s decisive overhaul of Nigeria’s foreign exchange regime.
Organizers of the award said the bank dismantled the multiple exchange-rate system and introduced a “willing-buyer, willing-seller” model, supported by the electronic foreign exchange matching system. The reform improved price discovery, enhanced transparency and curtailed speculative distortions.
The CBN also cleared a longstanding FX backlog owed to sectors such as aviation and manufacturing, a move widely credited with restoring market confidence. As a result, the spread between official and parallel market rates narrowed significantly to below two per cent by late 2025.
Nigeria’s external reserves rebounded strongly under the new policy framework. Gross reserves rose to $46.7 billion by November 2025, the highest level in nearly seven years, driven largely by improved FX inflows, stronger non-oil exports and renewed investor confidence.
The International Monetary Fund (IMF) had commended the reforms, noting that measures to improve FX market functioning enhanced liquidity and supported credible price discovery.
Inflation control was another major achievement cited by the awards committee. After peaking at 34.80 per cent in December 2024, inflation declined sharply to 15.10 per cent by January 2026, reflecting tight monetary policy and improved policy coordination.
The CBN raised its benchmark interest rate from 18.75 per cent in 2023 to 27.5 per cent in 2024, before cautiously easing rates as inflation moderated. The disciplined approach helped stabilise prices while anchoring market expectations.
Equally significant were governance and institutional reforms introduced under Cardoso’s leadership. The CBN ended quasi-fiscal interventions that had previously expanded liquidity and fueled inflation. It also strengthened internal controls, established a dedicated compliance department and implemented digital transformation initiatives, including the deployment of artificial intelligence tools.
The apex bank’s commitment to transparency and accountability further enhanced its credibility with both domestic and international stakeholders. Analysts noted improved communication of policy decisions and stronger engagement with market participants.
The banking sector also witnessed major reforms. The CBN introduced a recapitalisation programme requiring banks to raise fresh capital based on their licence categories, with over 30 institutions already accessing the capital market. The move is expected to strengthen financial system resilience and support long-term economic growth.
In addition, the bank advanced regulatory standards by aligning with Basel III requirements, enhancing risk-based supervision and improving liquidity monitoring across the sector.
Nigeria’s financial system stability was further reinforced by progress in financial crime compliance. The country’s removal from the Financial Action Task Force grey list in 2025 reflected improved anti-money laundering controls, stronger supervision and enhanced reporting systems.
The reforms have also attracted positive international recognition. Global rating agencies upgraded Nigeria’s credit outlook, citing stronger reserves, improved fiscal discipline and increased FX transparency. Investor sentiment improved markedly, with Nigeria’s 2025 Eurobond issuance attracting subscriptions more than five times the offer size.
Despite the progress, the CBN acknowledged that challenges remain, including sustaining disinflation, completing banking sector recapitalisation and deepening financial market reforms.
The awards committee noted that the central bank’s bold and coordinated policy actions over the past two years demonstrated strong leadership, resilience and commitment to macroeconomic stability.
Industry observers said the recognition underscores Nigeria’s re-emergence on the global financial stage, driven by credible monetary policy, structural reforms and renewed institutional discipline.
The award positions the CBN among leading central banks globally and affirms the effectiveness of its ongoing reforms in stabilising Africa’s largest economy.
