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  • CBN predicts 4.49% growth, 12.94% inflation next year

    CBN predicts 4.49% growth, 12.94% inflation next year

    Central Bank of Nigeria(CBN) has projected a 4.49 per cent economic growth and inflation easing to an average of 12.94 per cent next year.

    In its economic outlook yesterday, the CBN  said the growth and inflation easing will be driven by stable forex markets and rising oil output. 

    The forecast signals cautious optimism after two years of sweeping reforms by President Bola Tinubu’s government, with the bank betting on structural changes in oil, tax and foreign exchange markets to sustain growth and disinflation.

    In the outlook for next year, the apex bank projects stronger non-oil growth and sturdier external buffers even as fiscal deficits and external vulnerabilities linger.

    It said: “The growth prospect in 2026 is positive on account of continued gains from broad-based structural reforms… and improved stability in the exchange rate,” the central bank report said. Easing monetary policy would “add impetus to growth following the anticipated reduction in the cost of lending.”

    The CBN  kept its key rate at 27 per cent in November’s year-ending meeting, opting to let inflation cool further, but trimmed the deposit rate – a vote of confidence in the economy.

    Read Also: CBN revokes Aso Savings and Loans, Union Homes licences

    The move surprised economists, who had forecast a 100 basis-point cut after September’s first rate reduction since 2020.

    The bank expects headline inflation, which has averaged around 21.26 per cent this year, to plunge next year as easing food and fuel prices, coupled with forex stability, rein in cost pressures.

    Inflation slowed for the eighth straight month in November to 14.45 per cent.

    The outlook pegs oil, Nigeria’s key export, at $55 a barrel, an official rate near N1,400 per dollar, and oil output at around 1.50 million barrels per day. Fiscal spending is expected to stay expansionary, with a deficit of N12.14 trillion, or 3.01 per cent of GDP, funded largely through domestic borrowing, the report said.

    The bank sees external reserves climbing to $51.04  billion and a $18.81  billion current account surplus, buoyed by stronger oil and non-oil exports plus remittances.

    According to CBN Governor, Olayemi Cardoso, over the past 12 months, the country’s economy has transitioned from crisis management to laying the groundwork for a sustainable recovery.

    “After nearly a decade in which real GDP growth averaged about two per cent, reforms have restored momentum and confidence in our broad macroeconomic environment. Our economy grew by 4.23 per cent in the second quarter of 2025, the strongest pace in four years, driven by improvements in telecommunications, financial services, and oil production,” he said.

    “More importantly, in terms of long-term stability, inflation, while still high, has moderated consistently. From a peak of 34.6% in November 2024, it has more than halved to 16.05% in October 2025. This marks seven consecutive months of disinflation. Food inflation, the largest single component of the basket, fell to 13.12 per cent in October, down from 16.87 per cent in September and 21.87 per cent in August,” he said.

    This significant, steady decline in inflation is restoring real purchasing power for households and businesses. It also demonstrates disciplined execution and Nigeria’s return to orthodox monetary policy.

    “We continue with determination to bring inflation down further. The current double-digit rate cannot be acceptable. Price stability is the foundation of sustainable growth. 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.

    “Our models project continued disinflation in 2026, helped by stronger domestic production, improved FX liquidity, and more disciplined liquidity management. As inflation moderates and becomes firmly anchored, we will calibrate the policy rate in line with evolving data.

    “Domestic and international observers alike have noted Nigeria’s “huge turnaround” in macroeconomic management. Our commitment remains clear: monetary policy will stay evidence-based, data-driven, and unwavering in its pursuit of price stability.”

  • CBN revokes Aso Savings and Loans, Union Homes licences

    CBN revokes Aso Savings and Loans, Union Homes licences

    • NDIC begins insured deposit payment to depositors

    The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc

    In a statement, CBN Acting Director, Corporate Communications Department, Mrs Hakama Sidi Ali said the action is part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.

    She said the apex bank acted in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

    Mrs Ali said the affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN, having insufficient assets to meet their liabilities and being critically under-capitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN.

    They also failed to comply with several directives and obligations imposed upon them by the CBN. The CBN remains committed to its core mandate of ensuring financial system stability.

    Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc and the payment of insured deposits to their customers.

    In a statement, NDIC announced that it had started the formal liquidation process and the verification and payment of depositors in line with its statutory mandate.

    Read Also: Tunji-Ojo: Nigeria’s future depends on unity, national renewal

    The action followed the revocation of the licences of both institutions by the Central Bank of Nigeria on December 15, 2025, after which the NDIC was appointed as liquidator pursuant to Section 12 subsection 2 of the Banks and Other Financial Institutions Act 2020.

    The NDIC Management said it had activated all necessary procedures to protect depositors and ensure an orderly resolution of the failed institutions.

    “In line with Section 55, subsections 1 and 2 of the NDIC Act 2023, the Corporation has commenced the liquidation process for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” it said.

    The corporation disclosed that verification and payment of insured deposits to customers of the closed banks had already begun.

    It stated that depositors would be paid up to the maximum insured amount of N2 million per depositor, using the Bank Verification Number (BVN) as a unique identifier to locate depositors’ alternate bank accounts into which payments would be credited automatically.

    The NDIC explained that depositors with balances above the insured limit would first receive the insured portion of their funds, while the remaining balances would be paid later as liquidation dividends.

    These subsequent payments, it said, would depend on the realisation of the banks’ assets and the recovery of outstanding debts.

    “Depositors with balances in excess of N2,000,000 will be paid the initial insured amount, while their outstanding balances will be settled as liquidation dividends upon the realisation of the assets and recovery of debts owed to the failed banks,” the management noted.

    To facilitate the settlement of uninsured deposits, the corporation disclosed that it would immediately commence the sale of the banks’ assets and intensify efforts to recover outstanding loans.

    “To this end, the Corporation will commence the sale of the banks’ assets and continue recovery of outstanding loans to expedite payment of uninsured sums,” the statement added.

    The NDIC advised depositors to submit their claims either online or through physical verification.

    For online submission, depositors were directed to complete the digital claims form on the NDIC claims portal, while those opting for physical verification were asked to visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials would be available to attend to them.

    For verification and payment, depositors are required to present proof of account ownership, a verifiable means of identification such as a driver’s licence, permanent voter’s card, or national identity card, as well as details of their alternate bank account and Bank Verification Number. (BVN).

    The corporation also advised depositors to activate transaction alerts on their alternate accounts to receive payment notifications, noting that those without active alerts could confirm payments using their banks’ USSD codes or by visiting their bank branches.

    Creditors of the defunct banks were equally advised to submit their claims within the same verification window, either online or by visiting the nearest branch of the closed institutions.

    The NDIC stressed that in accordance with the law, liquidation dividends to creditors would only commence after all depositors had been fully paid.

    On the status of bank staff and shareholders, the corporation stated that payment of staff deposits would be made after depositors had been fully settled, using proceeds from the sale of the banks’ assets.

    Shareholders, it added, would only be paid after depositors and creditors had been fully settled, and subject to further realisation of assets and recovery of outstanding debts.

    The NDIC also issued a warning to debtors of the defunct banks, urging them to regularise their obligations.

    Debtors were advised to visit the corporation’s Asset Management Department to ensure full settlement of their outstanding loans.

    Reassuring the wider banking public, the NDIC said the action should not be interpreted as a sign of distress in the financial system.

    The corporation reaffirmed its commitment to the protection of depositors’ funds in all licensed banks and urged customers to continue their banking activities without fear, while stressing that banks whose licences have not been revoked remain safe and sound.

  • Non-remittance: CBN gets Jan 19 to reconcile with Finance Ministry, FRC

    Non-remittance: CBN gets Jan 19 to reconcile with Finance Ministry, FRC

    The House of Representatives Committee on Public Accounts has given the Central Bank of Nigeria (CBN) till January 19, 2026 to conclude all ongoing reconciliation with the Ministry of Finance and the Fiscal Responsibility Commission (FRC) over alleged unremitted revenues into the Federal government Account.

    Chairman of the Committee, Bamidele Salam, gave the directives yesterday following a request by the CBN for more time to appear before the committee following a House resolution summoning the apex bank governor.

    Salam recalled a December 10 resolution of the House at plenary directing the CBN Governor to appear before the committee following a motion indicating the CBN governor of failure to honour several invitations.

    He said the investigation followed extensive correspondence between the National Assembly, the CBN, the Ministry of Finance and other relevant agencies over alleged violations of the 1999 Constitution and the Fiscal Responsibility Act.

     Salam said reports by the Fiscal Responsibility Commission, the Office of the Attorney-General of the Federation and a special audit by consultants allegedly showed that the CBN failed to remit about N5.2 trillion in operating surplus to the Consolidated Revenue Fund between 2015 and 2022.

    He added that other findings include alleged outstanding remittances of about N954.3 million following the transition to the Treasury Single Account (TSA), discrepancies of about N11.09 billion, another N2.686 trillion uncovered during the migration of Federal Government balances, as well as N521.7 million in Value Added Tax (VAT) on remittance transactions.

    Read Also: Tunji-Ojo: Nigeria’s future depends on unity, national renewal

    Salam said the CBN, in a letter dated Dec. 15, 2025, requested additional time to respond and appear before the committee, citing the volume of information required and an ongoing reconciliation exercise with the Ministry of Finance.

    Speaking on the reconciliation process, Minister of Finance and Coordinating Minister of the Economy, Wale Edun said federal government revenue was central to governance, budgeting and public investment.

     “Federal government revenue is a critical aspect of government operations, budgeting, financing and investment in public assets,” he said, adding that reconciliation between fiscal and monetary authorities was a continuous process but acknowledged the need for a clear framework and timeline.

    “We need clarity and accuracy in both fiscal and monetary management. That is where transparency and accountability are seen, and it is also what rating agencies look at in assessing our financial position,” he said.

    Edun also reaffirmed the government’s respect for the National Assembly and its oversight role.

    Chairman of the House Committee on Public Assets, Ademorin Kuye pleaded with the committee to allow the CBN additional time to appear, stressing that the reconciliation must be concluded within a defined timeframe.

    “We are concerned that the 2025 budget is based largely on expected revenues, and we do not want this issue to drag on unnecessarily,” Kuye said.

    He said the House was required to submit its findings to plenary before the end of January 2026 and therefore needed to ensure that all parties were properly heard.

    “The reconciliation should involve the Fiscal Responsibility Commission and the Office of the Auditor-General for the Federation. The CBN and the Ministry of Finance remain the principal parties,” he added.

    Representative of Fiscal Responsibility Commission, Charles Abeta acknowledged longstanding challenges in engagements between the Commission and the CBN, saying “the history of engagement between the Commission and the CBN has not always been smooth”

    He welcomed the opportunity provided by the committee to engage constructively on the matter and expressed the Commission’s readiness for dialogue.

    “We are very keen on having a sit-down with the CBN to address any outstanding issues relating to remittances and compliance,” he said.

    Abeta said the Commission’s effectiveness had previously been hampered by weak enforcement powers but noted that recent legal amendments had strengthened its mandate.

    “With the amendment to the Fiscal Responsibility Act through the Finance Act 2020, particularly the provisions empowering the Minister of Finance to enforce remittances directly from source, there is now a clearer enforcement window,” he said.

    He added that while the Commission had historically lacked the capacity to compel compliance from defaulting agencies, the revised legal framework now provided an opportunity for improved enforcement.

    “This reconciliation process gives the committee a basis to issue clear directives and ensure compliance going forward,” Abeta said.

    The committee subsequently fixed Jan. 19, 2026, as the deadline for submission of reconciliation reports and Jan. 26, 2026, for the personal appearance of the CBN Governor before the committee.

    Salam said the final hearing would hold on Monday, Jan. 26, 2026, at 10 a.m., after which the committee would present its findings and recommendations to the House plenary.

  • CBN revokes licences of Aso, Union Homes Mortgage Banks

    CBN revokes licences of Aso, Union Homes Mortgage Banks

    The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc 

    According to the apex bank, this is part of renewed efforts to sanitise the mortgage sub-sector and enforce strict compliance with banking laws and regulatory standards.

    The CBN said the action was taken in exercise of the powers conferred on it under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

    In a statement issued on Tuesday, the Acting Director of the Corporate Communications Department of the CBN, Hakama Sidi Ali (Mrs.), said the decision followed persistent regulatory breaches by the affected institutions, which undermined their safety, soundness and ability to meet obligations to depositors and other stakeholders.

    According to the CBN, the two mortgage banks failed to meet the minimum paid-up share capital requirement applicable to the category of licence granted to them. The regulator also found that both institutions had insufficient assets to cover their liabilities, raising serious concerns about their solvency position.

    The statement further disclosed that the banks were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the CBN. In addition, they failed to comply with several regulatory directives and obligations issued by the apex bank over time.

    Read Also: Reps summon CBN governor over non-remittance of N16 trillion to government coffers

    “The affected institutions violated various provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” Sidi Ali said. “These include failure to meet the minimum paid-up share capital requirement, having insufficient assets to meet liabilities, being critically undercapitalised with capital adequacy ratios below the prescribed prudential minimum, and non-compliance with several regulatory directives.”

    The CBN noted that the revocation of the licences was part of a broader effort to reposition the mortgage banking segment of the financial system, strengthen confidence in the sector and ensure that only institutions with the capacity to operate in a safe and sound manner are allowed to do so.

    Sidi Ali said the apex bank remains resolute in enforcing regulatory standards across all segments of the financial system in line with its statutory mandate. “The Central Bank of Nigeria remains committed to its core mandate of ensuring financial system stability,” she stated.

    The CBN has, in recent years, repeatedly warned operators in the mortgage sub-sector to strengthen their capital positions, improve governance and comply fully with regulatory requirements, stressing that failure to do so would attract decisive supervisory action.

  • CBN orders PoS terminal providers to connect system to NIBSS, UPSL

    CBN orders PoS terminal providers to connect system to NIBSS, UPSL

    The Central Bank of Nigeria (CBN) has directed all acquirers, processors, and Payment Terminal Service Providers (PTSPs) to implement mandatory dual connectivity with the Nigeria Inter-Bank Settlement System (NIBSS) and Unified Payment Services Limited (UPSL) for Point of Sale (PoS) transactions within one month.

    The apex bank announced the directive in a December 11, 2025, memo signed by the CBN’s director of the payments system supervision department, Rakiya Yusuf.

     The  Corporate Affairs Commission (CAC) already plans to commence a nationwide clampdown on unregistered PoS agents effective January 1, 2026, as part of fresh efforts to curb money laundering in the country.

    The commission directed all operators to regularise their businesses before Jan. 1, 2026.

    The commission said the directive became necessary following the rising number of PoS operators conducting business without registration, which it said violates the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria (CBN) Agent Banking Regulations.

    The CAC described the trend as a reckless practice often enabled by some fintech companies.

    This, it said, poses significant risks to the country’s financial system and the investments of citizens.

    It said that beginning Jan. 1, 2026, no PoS operator would be allowed to operate without CAC registration, adding that security agencies have been mandated to enforce full compliance nationwide.

    “Unregistered PoS terminals will be seized or shut down by security officials. Fintechs enabling illegal operations will be placed on the watch list and reported to the CBN.

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    “All operators are advised to regularise immediately, and compliance is mandatory,” the statement said.

    The commission reaffirmed its commitment to ensuring orderliness within the sector.

    It said the directive aligned with broader efforts to sanitise the financial services space and strengthen regulatory compliance for the protection of users and investors.

    It added that the enforcement drive underscored its resolve to promote transparency, safeguard the economy, and deliver prompt and efficient services in line with its mandate.

  • CBN tasks Agric fund board with expanding credit access to farmers

    CBN tasks Agric fund board with expanding credit access to farmers

    The Central Bank of Nigeria (CBN) has charged the newly inaugurated Board of the Agricultural Credit Guarantee Scheme Fund (ACGSF) to ensure that lack of collateral or remote location no longer prevents Nigerian farmers from accessing credit.

    The Governor of the CBN, Olayemi Cardoso, gave the charge in Abuja during the inauguration ceremony, describing the Scheme as a critical institution that must evolve to meet the financing needs of modern agriculture.

    The 48-year-old ACGSF is one of Nigeria’s foremost and longest-standing development finance programmes, with a rich history in our socio-economic journey. It is not the CBN going back to interventions in some sectors, but a continuation of the apex bank’s statutory mandate, which recognises ACGSF.

    Cardoso said the core objective going forward is to make agricultural credit more accessible and inclusive. According to him, “our goal should be that a lack of collateral or remote location is no longer an insurmountable barrier to financing.”

    He described agriculture as central to Nigeria’s economic structure, pointing out that despite its contribution to national output and employment, credit to the sector remains very low.

    “Agriculture remains the backbone of our economy, contributing over one-fifth of Nigeria’s GDP and employing nearly two-thirds of our working population. Yet, paradoxically, it receives only a small fraction of formal credit – less than 5 percent of banks’ lending goes to the agricultural sector,” he said.

    The CBN Governor said the 48-year-old ACGSF was established to reverse this trend, noting that it remains one of Nigeria’s most enduring development finance tools. “It is not the CBN going back to interventions in some sectors but a continuation of the apex bank’s statutory mandate, which recognises ACGSF,” he said.

    Cardoso urged the Board to ensure that the Scheme becomes a reliable partner for farmers seeking financing. “Every hardworking farmer with a viable project should find in the ACGSF an enabling partner that helps them access the robust support they need to grow their enterprise,” he said.

    He stressed the need for stronger monitoring mechanisms to track the impact of guaranteed loans, noting that the era of disbursing funds without verifiable outcomes must end. “It is essential to institute a framework for tracking the impact of guaranteed loans on agricultural productivity and farmers’ welfare. This Board should champion the use of data and technology for real-time monitoring of projects supported under the Scheme,” he said.

    According to him, leveraging tools such as satellite imagery to track crop progress and digital dashboards to monitor loan disbursements would improve transparency and accountability. “Regular oversight will ensure that loans guaranteed by the Fund are being used for their intended purposes and are yielding positive results,” he added.

    Cardoso also said that proper evaluation will help the Board identify emerging risks such as regional loan defaults, and respond proactively through borrower support or adjustments in the Scheme’s approach. He asserted that sound evidence of increased output, higher farm incomes, and better food security is necessary for policy decisions that will strengthen the Fund’s operations.

    He described the inauguration of the Board as timely, noting that Nigeria must urgently bridge its lingering agricultural financing gap. “This longstanding financing gap has constrained the potential of millions of Nigerian farmers. The inauguration of this Board, therefore, comes at an opportune time as we embark on a bold new chapter in agricultural finance,” he said.

    Read Also: CBN confirms 82 licensed BDCs under revised guidelines

    Reviewing the Scheme’s legal foundation, Cardoso stated that “since its establishment by Decree No. 20 of 1977, the Agricultural Credit Guarantee Scheme Fund has played a vital role in de-risking agricultural lending and encouraging financial institutions to extend credit to farmers and agribusinesses.” He noted that by guaranteeing up to 75 percent of agricultural loans, the Fund has enabled banks to lend to categories of farmers that would ordinarily have been excluded.

    However, he stated that the complexities of today’s agricultural landscape require the Scheme to be more dynamic. “Modern agriculture is far more complex – characterized by extensive value chains, advanced technologies, climate and security risks, and stakeholders ranging from smallholder cooperatives to agritech startups,” he said. “We must therefore reposition the ACGSF as a dynamic, forward-thinking scheme capable of addressing these complexities.”

    The CBN Governor recalled that a 2019 amendment expanded the Scheme’s share capital from N3 billion to N50 billion, placing it on a stronger footing. He commended the Board’s broader composition, noting that the law now provides for a representative of Nigerian farmers. “Such inclusivity is strategic; it enshrines partnership between policymakers, financiers, and the farming community in guiding the Scheme’s activities,” he said.

    Cardoso said Nigeria’s agricultural sector sits at “the crossroads of unprecedented opportunity,” aligning with the Federal Government’s Renewed Hope agenda to build a resilient, technologically advanced, and inclusive agricultural economy. Achieving this vision, he said, requires dismantling long-standing barriers to credit access, especially for smallholder farmers who produce the bulk of Nigeria’s food.

    “Many lack collateral or credit history and are perceived as high-risk by conventional lenders. This is a structural anomaly we can no longer afford, given that these same smallholders feed our nation and drive our rural economy,” he said.

    He called on the ACGSF to play a transformative role in making agricultural credit more affordable and impactful. According to him, the Scheme must catalyse investments in modern inputs, irrigation, mechanisation, storage, processing, and other activities essential to productivity and income growth.

    He said the Board must also focus on key strategic priorities, including deepening financial inclusion for women and youth.

    “We know that rural women, for example, are key actors in agriculture, yet they often have even less access to credit and technology than their male counterparts,” he said, noting that nearly 60 percent of rural women do not use mobile internet. He urged the Scheme to work with microfinance banks, cooperatives, and fintechs to design suitable credit products using mechanisms such as group lending and agent banking.

    Cardoso quoted Aristotle’s maxim that “nature abhors a vacuum,” saying institutions must continually be guided and strengthened. “With today’s inauguration, we have filled a void and renewed our commitment to a prosperous, food-secure Nigeria,” he said.

    He urged the Board to approach the task before it with commitment, saying the transformation of Nigeria’s agricultural value chains will require determination and innovation.

    “Let us move forward together with innovation, integrity, and unyielding dedication,” he said. “We have an opportunity to ensure that the ACGSF not only regains its position but rises to new heights as the cornerstone of Nigeria’s agricultural transformation,” he said.

    The CBN Governor pledged full support to the Board as it begins its term. “The Central Bank of Nigeria stands ready to provide all necessary support to enable you to deliver on your mandate,” he said. “I am confident that with your expertise and commitment, the ACGSF will drive significant progress toward our shared goals of agricultural prosperity and national economic development.”

  • CBN confirms 82 licensed BDCs under revised guidelines

    CBN confirms 82 licensed BDCs under revised guidelines

    The Central Bank of Nigeria (CBN) has approved licenses of 82 Bureau De Change (BDC) operators under its revised guidelines.

    In a statement released yesterday and signed by CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, said the only two operators met the Tier-1 category plan of N2 billion capital base.

    The Tier-1 operators are Dula Global BDC Ltd, Trurate Global BDC Ltd. Others  in the Tier-2  category, with N500 million capital base  include Abbufx BDC Ltd, Acha Global BDC Ltd, Arctangent Swift BDC Ltd, Ascendant BDC Ltd,  Baracai BDC Ltd  and Bergpoint BDC Ltd. Others include Bravo Model BDC Ltd, Brimestone BDC Ltd , Brownston BDC Ltd, Buzzwallet BDC Ltd, Cashcode BDC Ltd, Chattered BDC Ltd and Chronicles BDC Ltd among others.

    The CBN had raised the minimum capital requirements significantly in May 2024, from N35 million to N2 billion for Tier 1 licenses and N500 million for Tier 2. The apex bank set June 3, 2025 deadline set for BDCs to achieve a new minimum capital requirements.

    Sidi Ali, said: “The Central Bank of Nigeria (CBN), in exercise of its powers conferred under the Bank and Other Financial Institutions Act (BOFIA) 2020, and the Regulatory and Supervisory Guidelines for Bureaux De Change Operations in Nigeria 2024 (the Guidelines), has granted Final Licenses to 82 Bureaux De Change (BDCs) to operate with effect from November 27, 2025”.

    She explained that by the notice, only Bureaux De Change listed on the Bank’s website are authorised to operate from the effective date.

    She said that while the CBN will continue to update the list of Bureaux De Change with valid operating licences for public verification on CBN website, the apex bank advises the general public to avoid dealing with unlicensed Foreign Exchange Operators.

     “For the avoidance of doubt, operating a Bureau De Change business without a valid licence is a punishable offence under Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. Members of the public are hereby advised to note and be guided accordingly,” she said.

    The new CBN guidelines for the sector requires all Tier-1 BDCs to operate nationally, while the Tier-2 BDCs can only operate in one state within the Federation.

    The capital raising was part of reforms to re-position the BDC sub-sector to play its envisioned role in the foreign exchange market in Nigeria.

    The guideline was issued after the conclusion of stakeholder consultations and in exercise of the powers conferred on the CBN by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

    The guidelines, amongst others, introduces new licensing requirements and categories of BDCs as well as revises the permissible activities, financial requirements, corporate governance requirements and AML/CFT/CPF provisions for BDCs.

    Read Also: Nigeria reaffirms commitment to regional stability at Ouattara’s inauguration

    It requires that all existing BDCs re-apply for a new license according to any of the Tiers or license category of their choice.

    According to the new guideline, “Tier-1 BDC may operate in any state of the Federation and the Federal Capital Territory (FCT), may establish branches and appoint franchisees in any State and FCT, subject to the written approval of the CBN and shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees”.

     It is permitted to exercise oversight on its franchisees, with all franchisees allowed to adopt their franchisor’s name, logo, branding, technology platform and regulatory rendition requirements.

    By the new rule, Tier 2 BDC Licence is permitted to operate only in one State of the Federation or the FCT; allowed to establish five branches in a State of operation, subject to the written approval of the CBN and required to maintain a minimum distance of one kilometre between its branches but is not allowed to appoint franchisees.

    The new rule further stops commercial, merchant, non-interest and payment service banks., financial holding companies, other Financial Institutions (OFIs), including International Money Transfer Operators and payment service providers, serving staff of financial services regulatory and supervisory agencies and serving staff of regulated financial services providers, among others from owning BDC license.

  • CBN grants final licences to 82 Bureaux De Change

    CBN grants final licences to 82 Bureaux De Change

    • …warns against unauthorised operators

    The Central Bank of Nigeria (CBN) has issued final operating licences to 82 Bureaux De Change (BDCs), with effect from November 27, 2025.

    This marks a new phase in the implementation of its regulatory reforms for the foreign exchange market.

    In a statement released on Monday, the Acting Director of Corporate Communications, Hakama Sidi Ali (Mrs.), said the approval was issued “in exercise of its powers conferred under the Banks and Other Financial Institutions Act (BOFIA) 2020, and the Regulatory and Supervisory Guidelines for Bureaux De Change Operations in Nigeria 2024.”

    She explained that with the effective date now in force, “only Bureaux De Change listed on the Bank’s website are authorised to operate,” adding that the public should rely solely on the official list when dealing with currency exchange operators.

    Sidi Ali said the CBN would “continue to update the list of Bureaux De Change with valid operating licences for public verification on our website,” reiterating the apex bank’s growing concern over the activities of unregulated foreign exchange dealers.

    She cautioned that members of the public should “avoid dealing with unlicensed Foreign Exchange Operators,” warning that such engagements expose individuals and businesses to significant financial risks.

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    Citing the legal framework governing BDC operations, the CBN reminded the public that operating a Bureau De Change without proper authorisation constitutes a criminal offence. “For the avoidance of doubt, operating a Bureau De Change business without a valid licence is a punishable offence under Section 57(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020,” the statement read.

    The apex bank urged Nigerians to “note and be guided accordingly,” as the updated regulatory regime seeks to strengthen transparency, sanitise the foreign exchange market, and streamline the operations of currency dealers under stricter compliance standards.

  • CBN raises interest on TBs above inflation rate

    CBN raises interest on TBs above inflation rate

    The spot rate on Nigerian Treasury Bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury Bills with one-year maturity has now surpassed Nigeria’s 16.05 per cent inflation by 145 basis points following a recent decision to keep the policy rate at 27 per cent.

    The Apex Bank came to the primary market with N700 billion Treasury Bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

    Read Also: CBN removes deposit limits, raises withdrawal thresholds

    Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90 per cent of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

    The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30 per cent, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50 per cent , the same as the previous auction.

    Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50 per cent , up from 16.04 per cent at the previous auction.

  • Economic outlook for2026 positive, says CBN

    Economic outlook for2026 positive, says CBN

    • Senate commends apex bank on inflation

    The Governor, Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, yesterday gave a detailed report on the macroeconomic performance of the second half of 2025 and the outlook for 2026, affirming that Nigeria’s economic recovery is firm and broad-based, declaring that “the outlook for 2026 is positive.”

    Cardoso said despite global headwinds, ranging from geopolitical tensions to fluctuations in oil prices, Nigeria has “consolidated macroeconomic stability, strengthened financial markets, and improved monetary policy effectiveness.”

    He made the disclosure yesterday during the second statutory engagement of the year between the Senate Committee on Banking, Insurance and Other Financial Institutions and the apex bank, in Abuja.

    According to the CBN Governor, the Bank’s inflation-targeting transition, tighter monetary stance and FX market reforms have restored credibility to monetary policy.

    For instance, he noted that the real GDP grew by 3.98 per cent in the third quarter of 2025, driven by crop production, ICT, real estate and financial services, while the Purchasing Managers’ Index reached 56.4 points in November, its highest level in five years, indicating stronger output growth.

    On inflation, Cardoso reported that headline inflation has fallen for seven consecutive months, down from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, the lowest in three years.

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    Food inflation, he said, has also dropped significantly to 13.12 per cent, easing pressure on household consumption and business operations.

    The Governor emphasised that the benefits of the CBN’s reforms are most evident in the foreign exchange market, where stability has returned and arbitrage opportunities have largely disappeared.

    He said the gap between the official and parallel market rates has narrowed to under 2 per cent, compared to over 60 per cent a year ago.

    “As of November 26, the naira traded at N1,442.92/$ at the Nigerian Foreign Exchange Market, an improvement from the first-half average.

    “Foreign reserves have surged to $46.7 billion, the highest in almost seven years, while diaspora remittances have risen by 66.7 per cent to about $600 million per month,” he said.

    Perhaps the most significant achievement, he noted, was the clearance of the $7 billion FX backlog, which has restored investor confidence and catalysed foreign capital inflows.

    Nigeria recorded $20.98 billion in capital inflows in the first 10 months of 2025—a 70 per cent increase over the entire 2024 figure and a 428 per cent jump from 2023.

    Cardoso also confirmed strong gains in the external sector, including an 85 per cent improvement in the current account balance and a dramatic narrowing of the balance of payments deficit by over 90 per cent in Q2 2025.

    On the financial system, he said the banking recapitalisation programme is “firmly on track,” with 27 banks raising capital and 16 already meeting or exceeding the new thresholds ahead of the March 31, 2026 deadline. The stock market, he added, has surged by 19 per cent between June and November due to renewed investor confidence.

    He also highlighted advances in digital finance, including the extension of the Payment System Vision Roadmap to 2028, the rollout of over 12 million contactless cards, expansion of the regulatory sandbox to 40 fintechs, and progress in interoperability and cybersecurity.

    He projected further moderation in inflation, sustained exchange-rate stability, stronger banking-sector resilience, and continued reforms to bolster payment infrastructure, liquidity management, and prudential oversight.

    The CBN, he assured the Senate, will remain vigilant amid global uncertainties but is confident that Nigeria’s strengthened economic foundations will mitigate risks and sustain recovery.

    With both arms of government aligned on economic direction, the Senate expressed optimism that the reforms will deliver lasting stability, growth, and improved living standards for Nigerians.

    In similar vein, the Senate, at the same sitting, commended the apex bank for what it described as a remarkable turnaround in key macroeconomic indicators, including sustained disinflation, exchange rate stability, rising external reserves and renewed investor confidence. Lawmakers also welcomed the Bank’s positive projections for 2026, noting that Nigeria’s economic fundamentals have strengthened significantly under ongoing monetary and structural reforms.

    Chairman of the Committee, Senator Mukhail Abiru, in his opening remarks, before the meeting went into closed door, said recent economic data show that the CBN’s reforms are yielding tangible results, with inflation declining steadily from its peak and the naira maintaining stability across markets.

    Abiru praised the CBN for steering inflation down to about 16 per cent as of October 2025, a sharp drop from the pressures of the past two years.

    He said the stability in the foreign exchange market, convergence of rates, and improved liquidity have strengthened business planning and boosted investor confidence.

    He also highlighted the steady growth in external reserves, now above $46.7 billion, which he said provides “stronger buffers against external shocks and reinforces Nigeria’s creditworthiness.”

    The Senator further commended the apex bank for its role in securing improved sovereign ratings from global agencies Fitch and S&P.

    On monetary policy, Abiru noted the CBN’s decision to retain the Monetary Policy Rate (MPR) at 27 per cent while adjusting the standing facility corridor, saying it reflects a delicate balance between anchoring inflation expectations and supporting credit expansion.

    But the Committee Chairman also raised issues requiring clarification, including the 2026 timeline for banking sector recapitalisation, the clearing of outstanding FX forwards, and lingering concerns about mutilated naira notes, excessive bank charges, cyber risks in the digital finance space, and the controversial Auditor-General’s report on unremitted operating surplus allegedly involving N1.44 trillion.