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The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that 32 banks in Nigeria have already met the revised minimum capital requirements under the ongoing recapitalisation programme, marking a major milestone in efforts to strengthen the financial system.

Speaking at the Monetary Policy Forum held in Abuja on Thursday, Cardoso said the progress reflects “commendable” industry compliance and positions the banking sector to better support long-term investment and economic growth.

He added that the programme is central to building a more resilient financial system capable of driving Nigeria’s ambition of becoming a $1 trillion economy.

He noted that the recapitalisation exercise is part of a broader set of reforms aimed at strengthening governance and risk management across the banking system.

He listed key measures to include the introduction of a risk-based capital framework, a phased exit from regulatory forbearance, stricter enforcement of insider lending rules, and restrictions on credit access for major non-performing obligors.

According to him, supervisory capacity has also been upgraded through digital tools such as enhanced early warning systems and improved off-site surveillance, alongside stronger cross-border supervision of Nigerian banks operating internationally.

The CBN governor said monetary tightening played a decisive role in reversing inflation trends, noting that headline inflation fell significantly from 34.8% in December 2024 to 15.06% in February 2026.

He explained that the Monetary Policy Committee raised rates aggressively by 875 basis points in 2024 to rein in inflation before initiating gradual easing, with the policy rate cut to 26.5% in February 2026 after earlier reductions.

Cardoso noted that internal simulations showed inflation would have worsened without these measures, stressing the importance of disciplined policy execution and coordination with fiscal authorities.

On the foreign exchange market, Cardoso said the apex bank cleared over $7 billion in verified FX backlogs and introduced a rule-based willing-buyer willing-seller system to improve transparency.

He added that tighter reporting standards, improved market surveillance, and reforms in interbank trading helped stabilise the market, narrowing the parallel market premium to below 2%.

Cardoso also revealed that diaspora remittances have emerged as one of Nigeria’s most stable sources of foreign exchange, with monthly inflows rising from about $200 million to $600 million following recent reforms.

He said the CBN is targeting $1 billion monthly remittances by the end of 2026, describing the growth as a structural shift supported by improved settlement systems and stronger regulatory controls.

The CBN governor also said gross external reserves rose to $50.12 billion in February 2026, up from $38.34 billion a year earlier, while net reserves climbed sharply from $3.99 billion at the end of 2023 to $34.80 billion in 2025.

He attributed the improvement to better reserve management, diversification strategies including gold integration, and strengthened external asset management frameworks.

Cardoso said one of the earliest reforms was curbing excessive Ways and Means financing, which dropped from N26.95 trillion in May 2023 to N2.84 trillion by January 2026.

He said the move restored compliance with statutory limits, strengthened central bank independence, and signalled an end to fiscal dominance.

He noted that Nigeria’s reform progress has gained international recognition, with sovereign rating upgrades from Fitch and Moody’s, and the country’s exit from the FATF grey list in October 2025.

The IMF also acknowledged improvements in transparency and discipline in its 2025 Article IV consultation.

Cardoso also said the CBN has modernised the payments system through migration to ISO 20022 standards, improved fraud management, and enhanced oversight of service providers.