Senate Commends CBN For Mid‑year Economic Gains
The Senate has praised the Central Bank of Nigeria (CBN) for what it calls “encouraging developments” in the country’s financial and monetary landscape over the last six months.
Speaking on Tuesday in Abuja during a statutory engagement with CBN Governor Yemi Cardoso, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East), said recent data point to notable improvements in macro‑economic stability.
“Since our last meeting in December 2024, inflation has begun to moderate—down to 22.97 per cent in May from 23.71 per cent in April—external reserves are inching up, and the exchange rate has stabilised with a much narrower gap between the official and parallel markets,” Abiru said.
He attributed these gains to the apex bank’s reform measures, including the Foreign Exchange Matching System and FX Code, which aim to deepen market transparency and discipline.
The Senate commended the Monetary Policy Committee for leaving the Monetary Policy Rate at 27.5 per cent in both February and May, describing the decision as a “deliberate pause” after last year’s aggressive tightening.
Lawmakers noted improved confidence in the FX market, with convergence between official and parallel rates following the CBN’s recent interventions.
The committee welcomed the central bank’s “limited but flexible” regulatory forbearance granted to Deposit Money Banks, saying it eases transitional burdens as the sector embarks on a recapitalisation drive to help achieve the government’s target of a US $1 trillion GDP by 2030.
The renewal of Nigeria’s bilateral currency‑swap deal with China was praised for diversifying external reserves and reducing reliance on the US dollar.
The launch of the Non‑Resident Bank Verification Number (NRBVN) initiative was described as a critical step toward stronger Know‑Your‑Customer standards and wider access to formal banking services for Nigerians abroad.
Senator Abiru added that while progress is evident, “other areas still require serious improvement” and will be discussed with the CBN governor in a closed‑door session.
Earlier, Governor Cardoso briefed the committee on the bank’s policy achievements and reiterated that the ongoing banking‑sector recapitalisation is a “potent catalyst” for the administration’s 2030 economic‑growth vision.