The Central Bank of Nigeria has defended its recent policy decisions, stating that ongoing reforms have helped cushion the impact of global economic shocks on Nigerians.

CBN Governor Olayemi Cardoso made this known during the Spring Meetings of the World Bank and International Monetary Fund in Washington DC, where he emphasised that the apex bank’s Monetary Policy Committee decisions are guided strictly by data.

According to Cardoso, timely reforms prevented what could have been a far more severe economic outcome for the country.

“If we had not taken the steps we did at the time—and if the reforms had not been implemented when they were—the outcome for the country could have been far more difficult and painful,” he said.

Nigeria’s inflation rate climbed to 15.38 percent in March 2026, reversing a prolonged period of gradual decline. The CBN governor attributed the increase to global pressures, particularly disruptions linked to tensions between the United States and Iran, which drove up energy, transportation, and food costs.

He noted that the central bank had deliberately resisted calls to ease monetary policy prematurely, anticipating external shocks that could destabilise the economy.

“This underscores an important point: members of the MPC have access to data and insights not always visible to the public,” Cardoso added.

Despite the inflationary pressures, the CBN reiterated its commitment to reducing inflation to single-digit levels, expressing confidence that economic stability is gradually taking hold.

“We remain focused on resilience because it directly addresses the concerns of Nigerians,” he said.

Also speaking, Minister of Finance Wale Edun said the country’s reform agenda is proving durable and self-sustaining, helping Nigeria navigate global economic uncertainties.

He highlighted key measures such as the adoption of a market-reflective foreign exchange regime and market-driven petroleum pricing, describing them as critical steps toward stabilising the economy.

Edun added that Nigeria’s reform programme has received positive feedback from international partners, noting that it is strengthening economic fundamentals and restoring investor confidence.

The post CBN: Reforms Shield Nigeria from Worse Economic Shock appeared first on Housing TV Africa.

The Housing Development Advocacy Network (HDAN), Africa’s leading housing advocacy organisation, has criticised the persistent under-performance of Nigeria’s mortgage sector, warning that millions of citizens remain unable to access affordable homeownership.

HDAN raised the concern at the Mortgage Bankers Association of Nigeria (MBAN) Mortgage Finance Roundtable held recently in Lagos.

Speaking at the event, HDAN’s Executive Director, Festus Adebayo, lamented the mortgage system’s long-standing failure to support Nigerians who need housing finance the most. According to him, the sector has remained ineffective despite years of policy interventions.

“Nigeria’s mortgage sector is not delivering for the people who genuinely need it. Too many Nigerians are shut out because the system is not structured to support affordability or accessibility,” he said.

Adebayo explained that a large percentage of Nigerians operate outside the formal banking system, while many potential homeowners do not possess the income documentation required by banks. Even those who qualify, he noted, face prohibitive interest rates ranging between 18 and 30 per cent — a level that consumes almost half of a typical family’s monthly income and makes homeownership unrealistic.

Beyond interest rates, he highlighted deeper structural challenges. Land titling, he said, remains entangled in bureaucracy that slows transactions and discourages investors. He added that foreclosure laws are unreliable and painfully slow, making long-term mortgage lending unattractive because banks struggle to recover funds if borrowers default.

Adebayo stressed that meaningful change will require more than policy declarations. He urged the government to rebuild key pillars of the housing finance ecosystem, beginning with strengthening the Nigeria Mortgage Refinance Company (NMRC) and ensuring the availability of long-term capital to support lower-interest mortgage products. He also emphasised the need to properly support government-backed initiatives such as the Family Homes Fund to expand access to affordable housing.

He noted that Nigeria’s macroeconomic instability — including high inflation and a volatile currency — continues to make mortgage pricing unpredictable, discouraging banks from offering long-term loans. According to him, the country urgently needs de-risking tools such as mortgage insurance and government guarantees to restore investor confidence.

On affordability, Adebayo said even households earning about ₦500,000 monthly struggle with mortgage repayment, pushing many Nigerians toward incremental building, cooperative housing schemes, and rent-to-own arrangements. He urged Nigeria to adopt more flexible global homeownership models, including shared-equity systems, income-linked repayment plans, and hybrid rental-ownership options, to close the affordability gap.

Looking ahead, he outlined key steps needed to reposition the sector for improved performance. These include expanding refinancing opportunities and long-term capital sources, stabilising the macroeconomic environment, digitising land administration, attracting private and institutional investment, and developing flexible mortgage products tailored to informal workers and young people.

Adebayo said these reforms are essential if the mortgage industry is to support sustainable homeownership and contribute meaningfully to reducing Nigeria’s housing deficit.

The post HDAN decries under-performance of mortgage sector in Nigeria, calls for recapitalisation and mortgage guarantees appeared first on Housing TV Africa.

At the 2025 IMF World Bank meetings, Nigeria earned praise for its economic reforms but faced warnings over debt and oil-sector risks.

The IMF raised Nigeria’s 2025 growth forecast to 3.9%, citing stronger oil output and investor confidence. However, it cautioned that debt costs and fiscal pressures could derail progress if not carefully managed.

IMF Africa Director Abebe Selassie commended subsidy removal and exchange rate reforms but urged “credible debt management and revenue efficiency.”

CBN Governor Olayemi Cardoso said inflation had dropped to 18.02%, reserves exceeded $43bn, and the naira had stabilised. He reaffirmed the government’s resolve to sustain reforms.

The IMF projected Nigeria’s fiscal deficit to rise to 3.7% of GDP in 2026, warning that debt servicing is crowding out development spending. It also urged diversification and action against illicit financial flows.

Kristalina Georgieva said, “Nigeria is on the right path, reforms are difficult but essential to secure lasting prosperity.”

The post IMF Warns Nigeria on Rising Debt, Oil Risks Despite Reform Gains appeared first on Housing TV Africa.

Nigeria may be on the verge of lower lending rates as the Central Bank of Nigeria (CBN) acknowledges easing inflationary pressures, a shift that could unlock cheaper credit and stimulate fresh investment into the economy.

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, reaffirmed the Bank’s commitment to macroeconomic stability, strengthening the banking sector, and positioning Nigeria as a leading investment destination.

He noted that while inflation remains elevated, recent signs of moderation may pave the way for lower interest rates once stability is consolidated. “There is a substantial potential for interest rates to decrease in the future as inflation continues to decline and as markets become more efficient in allocating capital,” he said.

Cardoso acknowledged that high borrowing costs have strained businesses but stressed that restoring confidence and reinforcing the financial system’s resilience remain top priorities. He also highlighted the ongoing bank recapitalisation exercise as vital for building stronger institutions capable of withstanding shocks and driving growth.

According to him, technology-driven solutions, deeper financial inclusion, and expanded fintech access will play a key role in tackling poverty and bridging financing gaps. He further pointed to improved coordination with fiscal authorities as a positive shift, noting closer collaboration with the Ministries of Finance, Trade and Industry, and the Budget Office.

Cardoso also underscored Nigeria’s strategic position in West Africa, stressing the importance of maintaining domestic stability amid global geopolitical changes.

Eurocham President Yann Gilbert, in his remarks, commended the forum as a platform for constructive engagement between European businesses and Nigerian policymakers, while reaffirming members’ commitment to long-term partnerships in Nigeria.

The CBN raised its benchmark rate six times in 2024, from 18.75% to a record 27.50%, in its most aggressive tightening cycle in history. So far in 2025, however, the Bank has held the rate steady at 27.50% across its February, May, and July meetings.

Still, high interest rates remain the top constraint for Nigerian businesses, according to the June 2025 Business Expectations Survey, which ranked them above insecurity and poor electricity supply. The Lagos Chamber of Commerce and Industry also warned that maintaining rates at 27.5% continues to weigh heavily on businesses.

The next Monetary Policy Committee meeting, scheduled for September 22–23, 2025, is expected to provide clearer signals on whether the CBN will maintain its pause or begin easing policy as inflation trends downward.

The post CBN signals possible reduction in lending rate appeared first on Housing TV Africa.

This motion was passed during an emergency session on Wednesday, marking 25 years of Nigeria’s unbroken democracy since May 1999.

Jonathan Gaza, a member of the House representing the Social Democratic Party (SDP) from Nasarawa, expressed concerns over the retrenchment process.

“This retrenchment, carried out without any fair hearings or panels or clear criteria, could lead to significant settlement costs for the nation. Arbitrary terminations will demoralize junior staff who are uncertain about their future,” Gaza stated.

READ ALSO: House of Reps Votes to Revert to Old National Anthem ‘Nigeria, We Hail Thee’

The House subsequently tasked the Committee on Banking Regulations to investigate the reforms at the apex bank that led to the downsizing of its staff.

In January, the Olayemi Cardoso-led CBN relocated some of its departments from Abuja to Lagos to enhance operational efficiency and reduce operating costs.

Additionally, the House was divided over the proposal to use mercenaries to combat terrorism and kidnapping in Nigeria. While some lawmakers feared it could increase insecurity, others believed it would support the efforts of security age

The post Reps To Investigate Mass Retrenchment at CBN appeared first on Housing TV Africa.

The directors, who were initially redeployed to the FSS 2020 Secretariat in November 2023, have been asked to exit the bank.

Sources within the CBN indicate that the dismissals are not related to any specific offenses but rather due to their close association with Emefiele. The decision has raised concerns among staff, who fear it could be a prelude to further layoffs.

Prior to this development, the CBN had relocated 150 staff of the Banking Supervision Department to Lagos, sparking allegations of discrimination against northerners. However, the CBN denied these claims, stating that the move was part of a reorganization aimed at improving efficiency.

Some of the affected directors have reportedly threatened to challenge the decision, while others have accepted the sacking due to the “poisonous working environment.”

READ ALSO: Nigerian Cement Companies Thrive Amid Rising Operational Costs

According to sources, the CBN governor, Yemi Cardoso, had initially wanted to dismiss all directors close to Emefiele but was advised against it as they were not political appointees. Instead, he transferred them to the FSS 2020 Secretariat, which is considered a less prestigious posting.

Critics have questioned the rationale behind transferring highly technical staff to a redundant secretariat, as well as the replacement of experienced personnel with individuals lacking the necessary expertise.

The CBN has not officially commented on the alleged sackings. However, nearly 100 staff of the Financial Policy Regulation Department have also been notified of a relocation to Lagos by April 29, 2024.

The post Cardoso Sacks Eight Directors for Close Ties to Emefiele appeared first on Housing TV Africa.

The report delves into the potential outcomes for banks that might fall short of the CBN’s capital requirements, highlighting the likelihood of mergers and acquisitions (M&A) as seen during the last recapitalization exercise in 2004/2005, which reduced the number of banks from 89 to 25.

While acknowledging the overall financial soundness of Nigerian banks as of 2023, the report suggests that the recent devaluation of the naira, with the exchange rate now exceeding N1400/$ compared to N132.9/$ in 2005, has eroded the value of the N25 billion capital base.

READ ALSO: CBN Increases Customs Duty Rate to N1,560.511/$

This devaluation has led to a significant drop in the capital base when converted to dollars, from $188.2 million in 2005 to a mere $18.4 million currently.

The CBN Governor has indicated that the planned recapitalization aims to support Nigeria’s target of achieving a $1 trillion economy, despite the relative stability of the banking sector in recent years.

This report comes on the heels of the CBN Governor’s suggestion in November 2023 to raise the minimum capital requirement for banks, citing the need for banks to have sufficient capital to support the country’s economic goals.

The post 17 Banks at Risk of Not Meeting CBN Capital Requirement Increase appeared first on Housing TV Africa.