CBN Reports Progress in Economic Reforms, Falling Inflation

The Central Bank of Nigeria reported significant progress in its economic reform agenda on Thursday, highlighting a sharp decline in inflation, surging foreign reserves, and enhanced investor confidence as key indicators of recovery. Speaking at the 2026 Monetary Policy Committee meeting in Abuja, Governor Olayemi Cardoso outlined how targeted policies implemented since 2023 have stabilized the naira, boosted diaspora remittances, and strengthened the financial sector, even as the bank navigates legal challenges and enforces stricter credit discipline.

Headline inflation has fallen from a peak of 34.8 percent in late 2024 to 15.06 percent in February 2026, according to CBN officials. This easing reflects the impact of monetary tightening, including a cumulative 875 basis point increase in the monetary policy rate to 27.5 percent in 2024, followed by modest reductions to 26.5 percent this year. External reserves have rebounded dramatically, rising from below $10 billion to over $50 billion, with net reserves jumping 772 percent to $34.8 billion by the end of 2025. Cardoso attributed these gains to the clearance of over $7 billion in foreign exchange backlogs, a shift to a...