Nigeria has entered a new phase of macroeconomic stability following two years of sweeping reforms that have lowered inflation, strengthened the naira, restored foreign-exchange market discipline and placed the economy on a firmer path toward sustainable, broad-based growth, according to Central Bank Governor Olayemi Cardoso.

Speaking at the 60th Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) on Friday, Cardoso said Nigeria is emerging from a period of severe macroeconomic distortion into one marked by renewed confidence in economic management. The Governor described the past two years as one of the most ambitious reform cycles in Nigeria’s recent history, and one now yielding measurable gains across all major macro indicators.

Inflation, which hit a peak of 34.6% in November 2024, has fallen by more than half to 16.05%, marking seven consecutive months of disinflation. Food inflation has eased even faster, dropping from 21.87% in August to 13.12% in October.

Cardoso said the sustained decline reflects the Bank’s strengthened policy framework: “Our transition to an inflation-targeting framework is gaining traction. We have improved data analytics, strengthened communication, and ended monetary financing of fiscal deficits. These actions have strengthened monetary-policy transmission and anchored expectations.”

On growth, Cardoso highlighted that Nigeria’s economy expanded by 4.23% in Q2 2025, the strongest in four years, driven by improved performance in telecommunications, financial services and a modest recovery in oil production. He noted that diversification continues to strengthen, with non-oil exports rising more than 18% year-on-year and oil now accounting for a smaller share of GDP and government revenues.

One of the clearest signs of renewed stability, the Governor said, is the transformation of the foreign-exchange market. The CBN has fully cleared the US$7 billion FX backlog that previously crippled the market, unified multiple exchange-rate windows, and implemented sweeping transparency reforms through the Nigerian Foreign Exchange Code and the Electronic FX Management System (EFEMS). As a result, the gap between the official and parallel markets has collapsed from over 60% to under 2%, while foreign capital inflows have surged to US$20.98 billion in the first ten months of 2025, a 428% increase compared to 2023.

Nigeria’s external buffers have also strengthened significantly. Foreign reserves now stand at US$46.7 billion, the highest in nearly seven years, providing more than 10 months of import cover. The current-account balance rose by over 85% in the second quarter to US$5.28 billion, reflecting improving competitiveness and stronger non-oil performance. Diaspora remittances have grown by approximately 12% following improvements in settlement transparency and the introduction of the Non-Resident BVN framework.

Cardoso noted that global institutions are increasingly recognising Nigeria’s progress. Fitch upgraded Nigeria to B (stable), Moody’s raised its rating to B3, and S&P revised its outlook to positive. “Fundamentals are strengthening, reform credibility is rising, and Nigeria’s risk profile is improving,” he said, adding that Nigeria’s recent US$2.35 billion Eurobond, which attracted US$13 billion in orders, signals robust investor appetite for the reform story.

The Governor also highlighted gains in the banking sector, where recapitalisation is proceeding ahead of the March 2026 deadline, with 16 banks already meeting or exceeding new capital thresholds. Digital finance continues to deepen, with more than 12 million contactless cards in circulation and Nigerian fintechs maintaining their dominance as the ecosystem that has produced eight of Africa’s nine unicorns.

Looking ahead to 2026, Cardoso outlined five priorities: strengthening the banking system, delivering durable price stability, modernising payments, supporting responsible fintech innovation, and building a more agile, digitally enabled Central Bank. “Nigeria is more resilient to external shocks today than at any point in our recent history,” he said: “In 2026, we will continue to anchor monetary policy on discipline, evidence and transparency,” Cardoso concluded. “Nigeria’s economy is stable, inclusive and primed for sustainable growth.”