KEY POINTS
- Nigeria’s banking sector raised ₦4.65 trillion in fresh capital through the recapitalisation exercise, according to CBN Governor Olayemi Cardoso.
- Headline inflation declined to 14.63 per cent in September, while external reserves rose above $55 billion.
- Formal remittance inflows were approaching $1 billion monthly, according to the CBN governor.
- The CBN reduced the monetary policy rate from 26.5 per cent to 23 per cent in September.
- Cardoso said the priority was to translate economic stabilisation into higher investment, productivity and sustainable growth.
MAIN STORY
Nigeria’s banking sector raised ₦4.65 trillion in fresh capital through its recapitalisation exercise, while headline inflation declined to 14.63 per cent in September, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has said.
Cardoso disclosed the figures on Saturday at a briefing following Nigeria’s participation in the 2026 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group in Bangkok, Thailand.
He said Nigeria’s external reserves had risen above $55 billion, their highest level in 18 years, while formal remittance inflows were approaching $1 billion monthly.
According to the governor, slightly more than 20 per cent of the fresh capital raised by banks came from domestic investors. He said this reflected confidence in the resilience and long-term prospects of the country’s banking system.
Cardoso also cited Fitch Ratings’ revision of Nigeria’s sovereign outlook from stable to positive as evidence of growing international recognition of the country’s economic progress.
He acknowledged the patience and resilience of Nigerians during a difficult period of economic adjustment, adding that the government and monetary authorities needed to consolidate recent gains and translate them into increased investment, productivity and sustainable growth.
During the annual meetings, the Nigerian delegation held discussions with international partners on the country’s economic outlook, policy priorities and challenges affecting the global economy.
Cardoso said engagements with credit rating agencies, including S&P Global Ratings and Moody’s, focused on Nigeria’s economic outlook and the path towards achieving investment-grade ratings in the medium term.
He said the discussions highlighted the importance of consistent economic policies, credible institutions and effective coordination between fiscal and monetary authorities.
The CBN governor also participated in IMF discussions on the global economy, where he shared Nigeria’s experiences and lessons for emerging economies, particularly in Africa.
“Emerging economies must look beyond surviving crises and focus on building productive, competitive and resilient economies capable of withstanding future shocks,” he said.
On artificial intelligence, Cardoso said African countries needed to develop the capacity to shape the technology’s development and capture the economic value it creates, rather than remain passive participants in the technological transformation.
He also discussed the CBN’s approach to monetary policy decision-making, transparency and communication at an IMF seminar on central bank decision-making under uncertainty.
Cardoso cited the September reduction of the monetary policy rate from 26.5 per cent to 23 per cent as an example of the role of credible institutions and clear policy communication.
The Nigerian delegation also pursued financial cooperation with Asian institutions. Cardoso said it engaged the Monetary Authority of Singapore and signed a memorandum of understanding with a global financial technology network.
In addition, the delegation convened the Nigeria-Asia Financial Connectivity Dialogue in collaboration with JPMorgan, the Nigerian Exchange Group and FMG Group.
Cardoso said his meeting with People’s Bank of China Governor Pan Gongsheng focused on strengthening cooperation in cross-border payments, settlement arrangements, financial technology and trade finance.
He added that Nigeria planned to build on the discussions during an upcoming visit to Beijing, with priorities including facilitating cross-border payments, supporting trade and investment, and strengthening financial intermediation between both countries.
The CBN governor said price stability, monetary discipline and the stability of the financial system remained central to the bank’s priorities. He reiterated that achieving single-digit inflation was a medium-term objective.
THE ISSUES
The capital raised through the banking recapitalisation exercise represents a significant development for the sector, but the amount alone does not establish how much additional lending banks will provide or how effectively the fresh capital will support businesses and households.
The impact will depend partly on banks’ capacity to deploy capital productively while managing credit risks and maintaining financial stability.
Similarly, the decline in headline inflation to 14.63 per cent does not mean that prices have returned to earlier levels. It indicates a slower annual rate of increase, while the cost of living remains an important concern for households and businesses.
The increase in external reserves and formal remittance inflows could support confidence in Nigeria’s external position. However, the durability of these developments will depend on foreign exchange inflows, external obligations and broader economic conditions.
The CBN’s medium-term objective of single-digit inflation also means that further progress in price stability remains a priority.
WHAT’S BEING SAID
“Emerging economies must look beyond surviving crises and focus on building productive, competitive and resilient economies capable of withstanding future shocks.” – Olayemi Cardoso, Governor of the Central Bank of Nigeria.
WHAT’S NEXT
The CBN will need to sustain its focus on price stability, monetary discipline and financial system resilience while monitoring the effects of its policy decisions on inflation and economic activity.
For the banking sector, attention will turn to how recapitalised institutions use their stronger capital positions to support lending, investment and financial intermediation.
Nigeria’s engagement with international rating agencies and Asian financial institutions may also shape future efforts to attract investment, strengthen cross-border payments and expand trade finance.
BOTTOM LINE
Cardoso has highlighted gains in bank capitalisation, external reserves and headline inflation as signs of progress in Nigeria’s economic adjustment. The next challenge is to sustain those gains and translate them into stronger investment, productive activity and improved economic conditions.
