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  • CBN, finance ministry present Nigeria’s economic progress at G24 meetings

    CBN, finance ministry present Nigeria’s economic progress at G24 meetings

    Nigeria has presented its economic progress to the international financial community at the G24 meetings held on the sidelines of the IMF/World Bank annual meetings in Washington D.C., with key discussions centered on trade balance, currency cooperation, and sustained macroeconomic stability.

    The Nigerian delegation, led by the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, and the Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed that the apex bank is developing a framework that will make currency swaps with other countries mutually beneficial.

    Cardoso said the initiative aims to strengthen Nigeria’s position in global trade and enhance liquidity support for key trading partners. 

    “We are working on a framework that ensures currency swaps are a win-win arrangement, serving the interests of both Nigeria and our partner countries,” he explained.

    He further noted that Nigeria’s trade surplus has risen to 6 percent of the country’s Gross Domestic Product (GDP), a development he attributed to consistent and disciplined macroeconomic management. 

    “The improved balance of trade reflects the impact of sound policies that are now beginning to yield tangible results,” he stated.

    According to the CBN Governor, there is a strong link between maintaining macroeconomic stability and achieving sustainable growth. 

    “Our focus remains on implementing policies that support stability, growth, and disinflation,” he said. “These measures are essential for maintaining investor confidence and supporting the recovery of productive sectors.”

    Read Also: CBN orders banks to refund failed ATM transactions within 48 hours

    A statement issued by the Federal Ministry of Finance said the participation of Dr. Uzoka-Anite at the G24 meetings represents the government’s continued engagement with global financial institutions to advance Nigeria’s development goals.

    “Dr. Uzoka-Anite’s participation in the meetings demonstrates the Nigerian government’s commitment to engaging with international financial institutions and stakeholders to drive economic growth and development,” the statement read. 

    “Her presence at the G24 meetings also reflects the government’s proactive approach to fostering economic cooperation and dialogue with global partners.”

    The G24 platform, which brings together finance ministers and central bank governors from developing and emerging economies, provided an opportunity for Nigeria to present its reform-driven progress and discuss policy coordination on global financial challenges.

    According to the Ministry of Finance, Nigeria’s continued engagement in such multilateral discussions “marks a significant step forward for the country’s economic growth and development,” as it seeks to deepen collaboration with international stakeholders to strengthen resilience, attract investment, and improve living standards.

    The G24 meetings, held in parallel with the IMF and World Bank Annual Meetings, serve as a forum for developing countries to articulate their positions on international monetary and financial policies and promote strategies that support inclusive and sustainable growth.

  • Customer petitions CBN over Providus Bank

    Customer petitions CBN over Providus Bank

    Managing Director and Chief Executive Officer of Fine & Country West Africa, Mrs. Udokanma Okonjo, has petitioned the Central Bank of Nigeria (CBN) against Providus Bank Limited over what she described as arbitrary, unauthorised deductions from her bank accounts and acts of intimidation by the bank’s officials.

    In the petition dated October 8, 2025, and addressed to the Director, Consumer Protection Department of the CBN, Mrs. Okonjo accused Providus Bank of making huge deductions from her domiciliary and naira accounts without her consent, instructions, or any lawful mandate.

    She alleged that the bank unilaterally linked an unsolicited overdraft facility of $50,000 to her domiciliary account (Account No. 0500183889) and subsequently deducted funds totalling $97,982.19 under the guise of recovering a supposed debt.

    According to her, she never applied for, negotiated, or signed any agreement for such a facility.

    Mrs. Okonjo explained that the bank initially claimed she owed N22 million, later converted the alleged debt to $71,000, and subsequently raised it to about $88,956.01, without offering any explanation for the variations.

    She also accused the bank of deducting N15 million from her naira account (Account No. 0500183872) on July 22, 2025, without her authorisation, despite the account being subject to a subsisting court restriction. The withdrawal, she said, resulted in a negative balance of N14,999,254.64.

    According to her, the bank had in the past credited and debited her accounts without consent, including a case where money was reportedly paid into her account by Providus Bank’s Managing Director, Mr. Walter Akpani, or other staff members. She expressed concern that the bank’s internal processes might have been compromised or manipulated to her detriment.

    Read Also: Cardoso leads Nigeria’s delegation to World Bank/IMF annual meetings in Washington

    In her petition, Mrs. Okonjo claimed that repeated requests for explanation and documentation from the bank were ignored. Instead, she said she received threatening WhatsApp messages from a bank official, Mr. Olayinka Lawuyi, of the Risk Management Department, who allegedly warned that her “indebtedness” could be published on social media if she failed to make payments.

    A screenshot of one of the messages dated July 4, 2025, and attached to her petition, reads: “Do you want your indebtedness on social media? If I do not see your payment within the next week, we shall commence full recovery, which you might find embarrassing.”

    Mrs. Okonjo described the message as harassment and reputational intimidation, adding that the threats came after she had only written to the bank seeking clarification about the alleged overdraft.

    Following the continued deductions and lack of response from the bank, her counsel, Barrister Sunny Omoragbon, issued a formal letter to Providus Bank on July 5, 2024, requesting all documents relating to the purported debt, including facility letters and a detailed breakdown of transactions. The bank, she said, never responded.

    In his own statement on the matter, Barrister Omoragbon confirmed that Mrs. Okonjo’s petition to the CBN is part of a wider legal effort to challenge the actions of Providus Bank.

    He explained that the case, which is currently on appeal, arose from the bank’s unilateral reclassification of a debit-card account as a credit facility without the customer’s consent, agreement, or documentation.

    According to Omoragbon, “Mrs. Okonjo never requested, negotiated, or signed for any overdraft facility. The so-called debt is a construct of arbitrary charges imposed without contractual authority or transparency. Over 70 percent of the disputed amount comprises unapproved interest and charges.”

    He disclosed that a Motion for Stay of Execution has already been filed pending hearing on October 28, 2025.

    The lawyer also condemned the “pattern of harassment and unprofessional communication” from Providus Bank officials, particularly the threats issued by Mr. Lawuyi, describing it as “a blatant act of intimidation and reputational bullying” that violates the CBN’s Consumer Protection Guidelines and basic professional ethics.

    Omoragbon added that one of the bank’s officials had previously admitted in writing that Mrs. Okonjo did not have the corresponding amount claimed as debt in her account. In another instance, he said, the same official suggested that funds were deposited into her account by Mr. Akpani or other staff members, a practice he described as “irregular and confusing.”

    He stated that the defense would pursue redress not only through the courts but also via petitions to the Central Bank, the Federal Competition and Consumer Protection Commission, and other regulatory bodies.

    “This case is no longer just about one client,” Omoragbon stated. “It raises fundamental questions about transparency, consent, and accountability in Nigeria’s banking sector. No customer should be subjected to intimidation or unconsented financial exposure.”

    In her petition to the CBN, Mrs. Okonjo requested a full investigation into Providus Bank’s actions, including the issuance of threats, unauthorised deductions, and irregular credits. She also urged the apex bank to compel Providus Bank to refund all wrongfully deducted sums and to impose regulatory sanctions to deter future misconduct.

    The case is pending both before the appellate court and the Consumer Protection Department of the Central Bank of Nigeria.

  • CBN orders banks to refund failed ATM transactions within 48 hours

    CBN orders banks to refund failed ATM transactions within 48 hours

    In a decisive move to strengthen consumer protection and rebuild public confidence in Nigeria’s financial system, the Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMBs) and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.

    The directive is contained in a draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released yesterday by the apex bank.

    The document, signed by Musa I. Jimoh, Director of the Payments System Policy Department, was circulated to banks, payment service providers, card schemes and independent ATM deployers, seeking stakeholder feedback by October 31, 2025.

    According to the CBN, failed “on-us” transactions—those conducted on a customer’s own bank ATM—must be reversed instantly. However, where technical challenges make instant reversal impossible, banks are required to process refunds manually within 24 hours.

    For “not-on-us” transactions—those involving ATMs operated by other banks—refunds must be processed within 48 hours.

    “Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stated.

    The CBN directed all banks and ATM operators to deploy technology capable of automatically reversing failed or partial transactions, removing the need for customers to file complaints.

    Financial institutions holding customer funds from failed ATM withdrawals are to reconcile and refund such balances immediately.

    The apex bank explained that the move follows increasing complaints from customers over delayed refunds and poor service delivery across the banking industry.

    It said the reforms were part of broader efforts to modernise the nation’s payment infrastructure and align Nigeria’s financial system with global standards.

    Beyond refund timelines, the new draft guidelines propose sweeping reforms to ATM operations across the country.

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    Under the new framework, banks and card issuers are required to deploy at least one ATM for every 5,000 active cards.

    Institutions are to achieve 30 percent compliance by 2026, 60 percent by 2027, and full compliance by 2028.

    Any future ATM deployment, relocation, or decommissioning must first receive CBN approval.

    For customer safety and improved accessibility, ATMs must be installed in enclosed or well-lit areas, equipped with anti-skimming devices, CCTV cameras, and compliant with the Payment Card Industry Data Security Standards (PCI DSS).

    Machines are also required to display functional helpdesk contacts, maintain audit logs and ensure that at least two per cent of all deployed ATMs feature tactile symbols for visually impaired users.

    Additionally, ATMs must: Dispense cash before returning cards; Allow free Personal Identification Number (PIN) changes; Issue receipts for all transactions except balance inquiries; Clearly display all transaction fees; Dispense only clean banknotes; and Maintain backup power to minimize downtime.

    The CBN also set strict standards for ATM uptime, stipulating that downtime must not exceed 72 consecutive hours. Operators are required to publicly disclose the causes of service disruption and the estimated restoration period if the downtime extends beyond this limit.

    To ensure compliance, the apex bank said it will conduct regular audits, on-site inspections, and require monthly reports from all ATM operators detailing the number and location of deployed machines.

    Institutions found to be non-compliant will face appropriate sanctions.

    The central bank said the reforms were necessary, given the rising cases of failed transactions, cyber fraud, and deteriorating service quality in the financial system.

    “The goal is to build a payments system that works seamlessly for everyone—urban and rural users alike,” the CBN stated.

    Nigeria’s electronic payments landscape has expanded rapidly, with over 200 million cardholders and an increasing shift toward digital banking.

    However, persistent network failures, inadequate infrastructure, and delayed refunds have continued to erode public trust.

    The latest draft guidelines—coming just eight months after the review of ATM fees—are expected to streamline operations, enhance consumer experience, improve security, and ensure greater accountability from banks and payment service providers.

    Stakeholders have until October 31, 2025, to submit their feedback before the final guidelines take effect, likely before the end of the year.

  • CBN to monitor recapitalising banks

    CBN to monitor recapitalising banks

    Central Bank of Nigeria (CBN) has said it was closely monitoring the remaining banks yet to meet the recapitalisation requirements.

    The apex bank had recently stated that 14 banks had already met the new minimum capital base for their functions.

    Acting Director, Corporate Communications Department, Hakama Sidi Ali, who spoke in Abuja during the “CBN Special Day” at the 20th Abuja International Trade Fair, said the apex bank, under the leadership of Governor Olayemi Cardoso, remains committed to tackling economic challenges and strengthening the resilience of the Nigerian financial system.

    According to her, the CBN has continued to sustain a stable and sound banking sector despite prevailing macroeconomic pressures.

    “The CBN has continued to address pockets of macroeconomic challenges confronting the Nigerian economy, ensuring that the banking system remains robust and resilient, with most financial soundness indicators staying within their respective prudential benchmarks,” Sidi Ali said.

    She explained that the recapitalisation exercise is part of broader reforms to safeguard the financial system, deepen productivity, and prepare the economy against external shocks.

    Read Also: CBN: external debt servicing dropped to $2.86 billion in eight months

    She said the bank is leading the evolution of Nigeria’s payments system through innovation. “The Bank’s Payment Systems Vision 2028 is a bold initiative to future-proof Nigeria’s payments ecosystem, aiming to broaden financial inclusion in rural areas, improve security, and minimise downtime for faster, safer, and more efficient transactions,” she said.

    Sidi Ali stressed that achieving economic sustainability rests on three pillars — a strong financial system, a stable foreign exchange market that supports planning, and effective collaboration between monetary and fiscal authorities.

    According to her, these efforts are beginning to yield results. “Our external reserves reached $43.05 billion on September 11, 2025, up from $40.51 billion at the end of July 2025,” she disclosed.

    On currency management, she reiterated the bank’s commitment to ensuring the availability of clean Naira notes, urging Nigerians to treat the currency with respect.

    She said: “We urge you to see the Naira as our vital symbol of national identity. Respect it and keep it clean. Do not spray, hawk, mutilate, or counterfeit the Naira. Be ambassadors of the Bank’s clean Naira notes, as the CBN cannot do it alone. Our Naira, Our Pride”.

    Director General, Abuja Chamber of Commerce and Industry (ACCI), Mr. Agabaidu Jideani, commended the CBN for its role in supporting business growth and ensuring macroeconomic stability.

    “For the business community represented by ACCI, the CBN is not just a regulator but a vital enabler of growth. Through access to credit facilities, intervention funds, forex management, and financial inclusion strategies, the CBN has opened opportunities for our members, particularly MSMEs, to thrive in a competitive environment,” Jideani said.

    He noted that the bank’s efforts in stabilising inflation, promoting innovation, and enhancing financial transparency are essential for business sustainability.

    He said: “The rollout of the Open Banking Framework, expansion of contactless payments, regulatory sandbox for fintech innovation, and continued support for MSMEs are crucial milestones.

    “These initiatives provide businesses with easier access to finance, safer payment channels, improved forex transparency, and innovative financial solutions that address the peculiarities of our economy”.

    Jideani also acknowledged the CBN’s contributions to youth empowerment, capacity building, and targeted sectoral interventions in agriculture, housing, healthcare, and education. “These efforts not only reduce barriers to doing business but also de-risk critical sectors for private investment, creating a more inclusive and resilient economy,” he said.

    He added that the business community appreciates the Bank’s deliberate steps toward fostering an environment where enterprises can innovate, expand, and contribute meaningfully to national development.

  • Perspectives on CBN’s plan to take full control of fixed income market

    Perspectives on CBN’s plan to take full control of fixed income market

    • By Rasak Adeboye

    Central Bank of Nigeria (CBN) has announced that from November 3, settlement of fixed income securities will migrate to the CBN. By December 1, the bank itself will run the trading platform. It is noted that secondary fixed income market platform is currently operated by FMDQ Group with the CBN as the largest shareholder (about 15 per cent stake) seating at the leadership of it’s board over the last decade.

    No doubt, the Central bank wanting more control of Government bonds are legitimate as they are the mainstay of monetary policy. They shape interest rates, liquidity, and confidence as the CBN want complete visibility of who is buying, who is selling, and where the money is flowing to.  In my considered view, this objective can be seamlessly achieved by a simple interoperability between FMDQ and CBN’s platforms. For market transparency and stakeholders’ confidence, it is advised that the investing public deserve more information on the shortcomings of the FMDQ fixed income trading and settlement system (if any) and provide clearer details on need for the planned takeover of the operation of fixed income market in Nigeria.

    Again, a regulator that also becomes an operator can be likened to case of being the referee and player in a football setting. It is a known fact that investors prize independence and clarity. Once the CBN starts looking like an exchange and a settlement house, confidence will definitely take a hit. Moreover, the timing of this policy is also concerning because migrating an entire market in a matter of weeks is operationally risky at any rate. One system bug, one failed reconciliation, the market could freeze, liquidity could vanish and yields could spike leading to an avoidable confidence crisis.

    Read Also: CBN assures of adequate cash supply for Yuletide

    Further, government bonds are capital market instruments hence, they are under the purview of the Securities and Exchange Commission (SEC) regulation because they are listed and supervised by the SEC. Allowing the CBN operate both the trading and the post-trade functions in our financial system undermines the statutory authority of the capital market regulator. We look to see SEC’s response in the weeks ahead. Whilst the CBN is interested in control, and policy leverage, the market is propelled by trust, predictability, and rules that everyone respects. If participants feel the rules can change by fiat, they will demand a risk premium. That means higher yields for the government and more expensive borrowing for everyone else. In fact, if this process is not reversed or managed seamlessly, it has the potential of scaring away portfolio investors from the Nigerian market with profound implication on investor confidence with downside implications on key macroeconomic indicators.

    Nigeria spent the last decade building an independent and vibrant market infrastructure. Thus, this latest move by the CBN risks dragging us back to the illiquidity, shallow and undiversified reality that characterised the system in pre-2014 era when the fixed income market was fully operated by the CBN.

    The ideal path is cooperation by strengthening oversight of FMDQ (stricter governance) and interoperability between FMDQ and the CBN platforms. Investors, local and foreign, yearn for  financial markets that they can trust, that they can predict, that everyone respects the rules, and not a controlled, ordered market.

    • Adeboye, a financial and public analyst writes from Abuja
  • Group calls for abolition of CBN 2% service charge on Hajj fare

    Group calls for abolition of CBN 2% service charge on Hajj fare

    Independent Hajj Reporters (IHR) has joined the call on the Central Bank of Nigeria (CBN) to abolish the 2% charge it receives from the payments of intending Hajj pilgrims from Nigeria.

    IHR said the 2% charge by the country’s apex bank, which translates to $90 per pilgrim (N144,000), based on the N1,600 foreign exchange benchmark used by the National Hajj Commission of Nigeria (NAHCON), has contributed to the high cost of Hajj for Nigerian pilgrims.

    Saudi Arabia allocates 95,000 slots to Nigeria for the annual pilgrimage.

    IHR said if the quota is filled, the CBN generates approximately $8,550,000 (N13.68 billion) in revenue yearly from Hajj payments by pilgrims.

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    IHR, in a statement on Sunday signed by its National Coordinator, Ibrahim Mohammed, said following public outcry over the high cost of Hajj, “The CBN should abolish the revenue it collects simply for transferring Hajj payments to NAHCON’S IBAN account in Saudi Arabia”.

    The statement added that, “While we do not claim that the payments are illegal, we believe that the CBN can waive them as their contribution to the reduction of Hajj fare in the country. Nigerian pilgrims are paying multiple service charges to various government establishments, which has jerked up the overall cost of the Hajj fare.

    “It should be noted that NAHCON has been funding its operations since 2019, relying on its service charge and relieving the government of Hajj operational costs. Such self-reliance measures need to be supported by other government institutions to guarantee seamless and efficient services for Nigerian pilgrims”.

    The CSOs’ appeal follows similar calls by many Hajj stakeholders urging the Central Bank to waive the payments.

  • CBN: external debt servicing dropped to $2.86 billion in eight months

    CBN: external debt servicing dropped to $2.86 billion in eight months

    Nigeria spent $2.86 billion on external debt servicing in the first eight months of 2025, new figures from the Central Bank of Nigeria (CBN) have shown. This accounted for 69.1 per cent of total foreign payments of $4.14 billion during the period.

    Comparatively, the country spent $3.06 billion on debt in the same period of 2024, representing 70.7 per cent of total foreign payments of $4.33 billion. The data revealed that although Nigeria reduced its absolute debt service bill by about $198 million (6.49%) year-on-year, debt repayments still dominate its external obligations.

    Essentially, for every $10 that left Nigeria between January and August 2025, nearly $7 went towards servicing debt. Monthly data showed significant fluctuations, reflecting the structure of Nigeria’s loan obligations. In January 2025, the country paid $540.67 million on debt, slightly lower than $560.52 million in January 2024.

    By February, payments dropped further to $276.73 million, before surging to $632.36 million in March, more than double the $276.17 million recorded in March 2024. April remained high at $557.79 million compared with $215.20 million a year earlier, while May recorded a sharp fall to $230.92 million, down by $623.45 million from the $854.37 million in May 2024.

    In June, the figure climbed modestly to $143.39 million, almost triple the $50.82 million recorded a year earlier. July slipped again to $179.95 million, representing a two-thirds decline compared with the $542.5 million of July 2024. By August, payments recovered to $302.3 million, slightly higher than the $279.95 million recorded a year earlier.

    Read Also: Nigeria secures AfDB commitment for agric expansion as SAPZ rolls out to 24 states

    The month-on-month changes in 2025 underline the erratic nature of Nigeria’s debt service obligations. From January to February, payments fell by nearly 49 per cent , then spiked by 129 per cent in March before dropping by 12 per cent in April. May saw a steep decline of 59 per cent relative to April, June fell further by 38 per cent before mild rebounds in July and August.

    In 2025, 69.1 per cent of all foreign outflows in the first eight months were used to service debt. In the same period of 2024, the share was even higher at 70.7 per cent . This showed that debt service obligations consistently consume at least seven out of every ten dollars Nigeria spends on international payments.

    This trend raises important concerns. First, it places pressure on the country’s foreign reserves, especially in months of heavy outflows such as March 2025, when $632.36 million went to debt servicing. Second, it reduces Nigeria’s ability to allocate scarce foreign exchange to essential imports and capital goods that could support domestic production. Third, it exposes fiscal vulnerability because debt obligations are non-discretionary, meaning the government cannot defer or avoid them without severe consequences.

  • OAuGF report indicts CBN for not remitting N4.304tr to Fed Govt

    OAuGF report indicts CBN for not remitting N4.304tr to Fed Govt

    Central Bank of Nigeria(CBN) has been indicted by the Office of the Auditor-General for the Federation (OAuGF) for failing to remit over N4.304 trillion to the Federation Account.

    A 2022 audit report by the OAuGF, which contains the alleged infraction by the CBN, also showed that the Transmission Company of Nigeria(TCN) and 10 other Ministries, Departments and Agencies(MDAs) failed to recover about N1.769 trillion owed to the Federal Government. 

     The CBN was listed alongside the  Nigeria National Petroleum Corporation Limited(NNPC Ltd.), the Nigeria Lottery Regulatory Commission and the Universal Service Provision Fund for under-remitting operating surplus amounting to about N1.473 trillion. 

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    The Standard Organisation of Nigeria, National Eye Centre, Kaduna and the  Institute of Agricultural Research were also mentioned as being part of the offence.

    This is contained in the report of the Auditor-General for the Federation on the noncompliance/internal control weaknesses in Ministries, Departments and Agencies of the Federation Government of Nigeria for the year ended 31st December, 2022.

    The report on the non-compliance/internal control weaknesses in MDAs was signed by the Auditor General for the Federation, Shaakaa  Chira. It was dated August 21, 2025 and submitted to the Clerk to the National Assembly.  

    The report marked AuGF/AR.2022/01. said the issues classified as cross-cutting and listed in about 27 audit queries relate to the same non-compliance/internal control weaknesses identified in at least the MDAs covered by the Auditor General for the Federation’s Annual Report.

    According to the report, the CBN failed to recover an outstanding revenue/debt of about N1.413 trillion for the government during the year under review, did not remit about N1.445 trillion of its operating surplus and another N1.445 trillion as internally generated revenue to the Consolidated Revenue Fund.

  • CBN governor launches new lecture series on monetary policy

    CBN governor launches new lecture series on monetary policy

    The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has instituted a new lecture series to be held in collaboration with leading tertiary institutions across the country over the next three years.

    A statement from the CBN on Tuesday said, “This initiative is designed to be a platform for thought-leadership discourse on national economic development.”

    The CBN considers the initiative central to its strategy of deepening public understanding and strengthening the transmission of monetary policy.

    Cardoso is scheduled to deliver the landmark inaugural lecture at the Lagos Business School on Friday, October 3, 2025.

    The lecture, titled “Next Generation Leadership in Monetary Policy and Nation Building,” will serve a dual purpose.

    The CBN stated that the inaugural edition will commemorate the second anniversary of “Team Cardoso’s” leadership at the apex bank, a period defined by a renewed focus on price stability, institutional transparency, and anchoring monetary policy to the everyday realities of Nigerians.

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    The CBN stated that the lecture series also “aims to foster dialogue, promote innovation, and advance an inclusive financial system that works for all Nigerians, while positioning the country as a leader on both the African and global stages.”

    Since assuming office in September 2023, Cardoso has consistently stressed that the Bank’s core mandate, safeguarding price stability, is essential to driving sustainable economic growth and protecting livelihoods. He had previously spoken about the necessity of adaptive policy in a changing world.

    “Nigeria is at a pivotal moment, where technology, global financial realignments, and the energy of its youthful population are reshaping its economic future. Innovation must be harnessed intentionally and confidently, particularly by institutions like the CBN,” Cardoso noted in an earlier engagement.

    The lecture is expected to draw a high-profile audience, including senior policymakers, industry leaders, academics, and students, thereby emphasizing the crucial role of monetary policy in fostering stability, growth, and national development.

  • CBN rate cut

    CBN rate cut

    •Although it falls far short of expectations, it is still laudable

    It is not for nothing that Nigerians have generally welcomed the reduction of the Monetary Policy Rate (MPR)  by the Monetary Policy Committee (MPC) from 27.5 per cent to 27 percent at the committee’s 302nd meeting last week. Although it was something that Nigerians had long hoped for in the last few years, the exigencies of the economy had made it practically unrealistic.

    According to Central Bank of Nigeria (CBN) governor, Yemi Cardoso, the MPC decision was underpinned by “sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery efforts.”

    In other words, the time was finally right.

    Among other reasons, he noted that headline inflation had slowed to 20.12 per cent in August from 21.88 per cent in July. Food inflation, he also reported, fell to 21.87 per cent from 22.74 per cent, while core inflation eased to 20.33 per cent from 21.33 per cent.

    On a month-to-month basis, inflation dropped sharply to 0.74 per cent in August compared with 1.99 per cent in July.

    There were other notable decisions. The MPC also adjusted the Standing Facilities corridor around the MPR to +250/-250 basis points to improve the efficiency of the interbank market and strengthen monetary policy transmission. The committee further introduced a 75 per cent Cash Reserve Ratio (CRR) on non-TSA public sector deposits for enhanced liquidity management.

    For commercial banks, this was adjusted to 45 per cent while retaining that of merchant banks at 16 per cent. The Liquidity Ratio was left unchanged at 30.00 per cent.

    Said he of the cut in MPR: “This reduction is the first under my leadership and the first in five years”; noting that “the last time the MPC cut its policy rate was in September 2020 when it dropped from 12.5 per cent to 11.5 per cent.

    As would be expected, members of the organised private sector see the reduction as not only “marginal but insufficient to ease the credit squeeze on their businesses”. For Nigerians as a whole, it seems unlikely that they would be particularly enthusiastic about any cut short of returning the reference rate to a single digit.

    Here, Nigerians would recall occasions in the past where suggestions were actually made in some quarters that the rate be legislated by fiat!

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    While varied positions on the subject would seem understandable, they merely highlight the misconceptions about the CBN’s role, particularly its dilemma in its statutory role of keeping inflation under control while ensuring unimpeded growth on one hand, and the daily frustrations of economic actors who have businesses to run, and must do it competitively under a constantly looming shadow of foreclosure, on the other.

    In all of these, we cannot but commend Cardoso and his team for keeping admirably calm, while keeping their eyes on the ball.

    For us, however, good as the trend is, the work has only begun. In fact, there is still much to be done to get the economy back to full recovery. Liquidity management remains a huge challenge even more so now that state treasuries are literally awash with Federation Account Allocation Committee (FAAC) cash.

    We expect the apex bank to continue to keep a keen eye on the monster of inflation to prevent a relapse to the immediate past. As for interest rates, we expect things to moderate a bit to reflect the trend.

    On the whole, we urge the state governments in particular to focus on those expenditures that could engender real growth in the economy; surely the time for bogus expenditures should belong in the past.

    If anything, the expectation is for both the fiscal and monetary authorities to continue to work together to deliver on growth that Nigerians can truly be proud.