The Central Bank of Nigeria (CBN) has announced significant progress in the country's economic recovery, with inflation showing a dramatic decline and foreign exchange market stabilization becoming evident.
Economic Turnaround Confirmed
Olayemi Cardoso, Governor of the Central Bank of Nigeria, declared that Nigeria has "turned a decisive corner" in its economic reform journey. Speaking at the 60th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos on Friday, November 28, Cardoso expressed satisfaction with the current economic trajectory.
The CBN chief highlighted that inflation has eased substantially in recent months, dropping from 34.6% in November 2024 to 16.05% in October 2025. This represents seven consecutive months of disinflation, marking one of the most significant improvements in price stability witnessed in Nigeria in recent decades.
Foreign Exchange Market Stabilizes
Cardoso revealed major breakthroughs in Nigeria's foreign exchange market, describing its stabilization as a key achievement of the ongoing reforms. The CBN has successfully cleared the multi-billion-dollar FX backlog inherited from the previous administration, estimated at over $7 billion.
This clearance has restored market integrity and rebuilt confidence among foreign airlines, manufacturers, and portfolio investors. The CBN governor attributed the return of stability to several strategic measures including:
- Unification of exchange rates
- Deployment of the Electronic Foreign Exchange Management System (EFEMS)
- Introduction of the Nigerian FX Market Conduct Code
These measures have collectively reduced market opacity, curbed arbitrage opportunities, and allowed the naira to trade within a narrow range.
Food Inflation Shows Significant Improvement
In addition to the general inflation decline, food inflation has also shown remarkable improvement. Cardoso reported that food inflation dropped to 13.12% in October 2025 after hovering near 22% earlier in the year.
The CBN governor emphasized that the bank's commitment to orthodox monetary policy, transparency, and stronger regulatory discipline has begun to correct long-standing economic distortions. He cited renewed investor confidence as clear evidence that Nigeria's macroeconomic trajectory is improving substantially.
Cardoso stated: "The foundation for a revitalised Nigeria has been laid. The journey continues, but our path is clear; disciplined policy, credible institutions, and a commitment to stability."
The CBN chief reaffirmed that the organization will continue to operate with discipline and transparency, providing forward guidance and leveraging technology to support a more stable, inclusive, and innovative financial system.
