By Tony Obiechina, Abuja
The Central Bank of Nigeria (CBN) says recent reforms in the foreign exchange market, monetary policy framework and banking sector recapitalisation programme have strengthened the foundations of Nigeria’s financial system and positioned it for greater resilience.
CBN Deputy Governor, Corporate Services, Dr Mohammed Sani Abdullahi who disclosed this while declaring open the 38th CBN Seminar for Finance Correspondents and Business Editors in Abuja on Tuesday, said the reforms were initiated to restore stability, rebuild confidence and refocus the apex bank on its core mandate after the current management assumed office three years ago.
The seminar, themed “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era,” brought together financial journalists, and business editors to discuss the future of Nigeria’s financial system.
Abdullahi acknowledged the role of the media in communicating and scrutinising policy decisions during a period of major economic reforms.
“You reported difficult decisions when outcomes were still uncertain. You asked questions as markets adjusted and helped businesses and households understand what the changes meant. You also challenged us, as you should,” he said.
According to him, when the current management took over in 2023, Nigeria faced significant macroeconomic and financial sector challenges, including a fragmented foreign exchange market, exchange rate distortions, pressure on external reserves, rising liquidity levels and declining investor confidence.
He noted that the wide gap between official and parallel market exchange rates created incentives for arbitrage and weakened confidence in the formal foreign exchange market.
To address the challenges, the CBN consolidated multiple foreign exchange windows, removed restrictions on 43 categories of imports previously excluded from accessing official foreign exchange, cleared verified foreign exchange obligations and introduced new market transparency measures.
The Deputy Governor said the reforms were complemented by tighter monetary policy, stronger liquidity management and the gradual winding down of intervention financing programmes.
He added that the banking sector recapitalisation programme announced in 2024 was designed to ensure that banks possess adequate capital buffers to support economic growth and withstand future shocks.
“Three years on, the foreign exchange market is showing greater stability, while the recapitalisation programme is strengthening the capacity of banks to support the economy as broader reforms take hold,” he recalled.
Earlier, the Director of Corporate Communications and Investor Relations, Michael Chukwuemeka Akuka, described the seminar as an important platform for engagement between the CBN and financial journalists.
He said the focus had shifted from whether banks could successfully raise fresh capital to how a recapitalised banking sector would deploy those resources to support economic development and sustain public confidence.
“It is no longer whether the banking sector can raise capital, but what a recapitalised banking sector does with the additional capital that has been raised,” he said.
Akuka urged journalists to interrogate policy issues beyond the headlines and seek deeper understanding of economic reforms.
“The quality of public understanding of monetary policy and financial system reform depends substantially on the accuracy, context and judgement that finance correspondents and business editors bring to their reporting,” he added.
Also speaking, Director of Stakeholder Engagement and Institutional Relations, Hakama Sidi-Ali, commended finance correspondents and business editors for their support and contributions to the transformation of the CBN’s communications strategy over the past three years.
She attributed many of the Bank’s communication successes and recognitions to constructive engagement with the media and urged journalists to extend the same support to the new leadership of the Corporate Communications and Investor Relations Department.
The two-day seminar featured paper presentations from regulators, banking industry leaders and media professionals on banking sector reforms, financial stability and the evolving role of monetary policy in Nigeria’s post-recapitalisation environment.
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