The Central Bank of Nigeria (CBN) has been named Central Bank of the Year by Central Banking Magazine, in recognition of sweeping reforms aimed at restoring macroeconomic stability and investor confidence.
The award acknowledges what the publication described as a “return to policy orthodoxy” under the leadership of CBN Governor, Olayemi Cardoso, whose administration has implemented significant monetary and institutional reforms since 2023.
According to the magazine, Nigeria’s economy had previously faced severe challenges, including high inflation, a weakened naira, depleted foreign exchange reserves, and declining investor confidence.
A major highlight of the reforms was the overhaul of the foreign exchange (FX) market, including the adoption of a willing-buyer, willing-seller framework and the introduction of an electronic FX matching system. These measures helped narrow the gap between official and parallel market exchange rates from over 60 per cent to less than two per cent.
The apex bank also cleared a backlog of FX obligations estimated at $7 billion, boosting investor confidence and improving liquidity in the market.
In its fight against inflation, the CBN tightened monetary policy by raising interest rates aggressively before easing them as inflation began to decline. Inflation, which peaked above 34 per cent in 2024, has dropped to around 15 per cent by early 2026.
Additionally, Nigeria’s external reserves rose to $46.7 billion by late 2025, marking the highest level in nearly seven years and providing more than 10 months of import cover.
The report also highlighted institutional reforms by the CBN, including ending quasi-fiscal interventions, strengthening regulatory oversight, and improving transparency in policy communication.
Further achievements include Nigeria’s removal from the Financial Action Task Force grey list and positive assessments from the International Monetary Fund.
Despite the progress, the publication noted that challenges remain, including sustaining inflation control, completing banking sector reforms, and strengthening institutional capacity.
