Protocol.
Good evening, distinguished guests, esteemed members of the Chartered Institute of Bankers of Nigeria, colleagues, and friends.
It is my honour to join you at the 60th Annual Bankers’ Dinner.
I extend my appreciation to the leadership of the Institute for your continued partnership and the pivotal role you play in shaping the evolution of Nigeria’s financial system.
Your commitment to ethics, professionalism, and service has shaped our banking landscape over the decades.
During past years, this annual gathering, midwifed by the CIBN, has become a tradition and a platform for reflection, accountability, and shared purpose. It is a night when the central bank and the financial industry deepen dialogue, renew commitments, and affirm our collective resolve to strengthen Nigeria’s economy. It reinforces our shared responsibility to uphold trust, transparency and integrity across the financial system.
Tonight, we gather at a defining moment for our nation—one marked by global uncertainty, domestic recalibration, and deep institutional rebuilding. Yet amid these challenges lies a moment of renewed clarity. Over the past year, we have collectively committed to restoring macroeconomic stability, rebuilding trust, and strengthening the credibility of the Central Bank of Nigeria. I am pleased to report meaningful progress on all three fronts, even as we remain fully aware of the work ahead. Our actions continue to reflect the policy direction we articulated from the outset—in other words, we said what we would do, and we have done it, transparently and consistently.
Now, for those who know me, there is always a risk that my speeches at the CIBN can be long, but tonight, the punishment is mine. Because standing throughout is uniquely my cross to bear.
Tonight, as you sit — comfortably — I will take you on a journey. Over the past two years, Nigeria has undertaken one of the most ambitious cycles of reforms in its history. These reforms required courage, sacrifice and patience. This evening, I will reflect on our journey from November 2024 to date, highlighting the bold policies that are restoring stability to the macroeconomic environment. I will also look ahead to the emerging opportunities before us as we enter 2026 with a newfound resilience and stronger economic fundamentals.
Distinguished guests, before I proceed, I must acknowledge the very real challenges facing many communities across our country. Recent incidents, and the renewed international spotlight on Nigeria’s security situation, have underscored the human toll of conflict and the urgency of sustained solutions. On behalf of the Central Bank, I extend our deepest sympathies to all families who have experienced loss or disruption.
While security matters fall outside the Bank’s mandate, we recognise their profound economic implications. The Government is taking steps to address these issues, and as monetary authorities, our role is to ensure that the economic foundations remain stable and supportive, so that investment, livelihoods, and community resilience can continue to strengthen as broader national efforts advance.
Recent reforms have begun to ease inflationary pressures, stabilise the exchange rate, and restore investor confidence. The remarkable endurance and tenacity of Nigerians bolster our resolve at the Central Bank to improve our internal processes, deepen analytical rigour, and ensure that every policy is anchored on evidence, transparency, and our duty to the Nigerian people, even amid global uncertainties. Our vision is clear: a Central Bank of Nigeria that is trusted and respected.
To fully understand Nigeria’s trajectory today, it is important to situate our recent reforms within the world around us. Global growth continues to moderate as geopolitical tensions, supply-chain realignments, and rising protectionism reshape the world economy. Advanced economies are adjusting to slower growth paths, while many emerging markets, particularly in Africa, continue to contend with tightening external financing conditions and persistent price pressures.
Yet, despite these headwinds, pockets of relief across the continent have been assisted by a softer U.S. dollar and easing global inflation. Many African currencies, previously under intense pressure, are beginning to stabilise. Supported by improved economic management and domestic reforms, Sub-Saharan Africa is projected to grow by 3.8% in 2025 and 4.4% in 2026, according to the World Bank.
Nigeria, Ethiopia, and Côte d’Ivoire are leading this continental recovery, demonstrating the impact of decisive reforms, credible institutions, and focused policy direction. This type of resilience is never automatic; it is the outcome of difficult, disciplined choices—choices we too have had to make.
A case in point is Nigeria’s improved economic diversification: with oil now accounting for a smaller share of our GDP, 33% of government revenue, and 51% of exports – significantly reducing our vulnerability to oil price shocks.
A case in point is Nigeria’s improved economic diversification: with oil now accounting for a smaller share of our GDP, 33% of government revenue, and 51% of exports – significantly reducing our vulnerability to oil price shocks.
Ladies and gentlemen, the story of Nigeria’s economic recovery cannot be appreciated without first recalling where we started, because the reforms of today are borne out of a determination to change the conditions we met.
When this leadership team assumed office, our economy faced severe macroeconomic distortions. Inflation was surging. FX liquidity had evaporated. External reserves were non-existent. Trust in economic management had weakened. Unorthodox monetary practices had eroded confidence. Businesses could not plan or price. Investors could not commit.
The foreign exchange market was in paralysis. A backlog of over US$7 billion in unmet FX obligations undermined market integrity. The spread between official and parallel market rates had blown out to more than 60%, creating distortions and rent-seeking opportunities.
High inflation had become normalised, stuck in double digits for most of the last 35 years and risen to 34.6% as of November 2024. Food prices were crippling households. Liquidity conditions were unstable. Many businesses faced an existential threat.
The banking sector, though fundamentally sound, was at risk of being dragged into distress by a deteriorating macro environment and inconsistent policy signals.
This was the Nigeria we inherited—not one standing at the edge of a macroeconomic precipice, but one that had already gone over the cliff. It is important to recall this not for drama, but for context: the progress we cautiously acknowledge today is meaningful only when measured against the depth of the challenges that came before it.
Over the past twelve months, Nigeria’s economy has transitioned from crisis management to laying the groundwork for a sustainable recovery. After nearly a decade in which real GDP growth averaged about 2%, reforms have restored momentum and confidence in our broad macroeconomic environment. Our economy grew by 4.23% in the second quarter of 2025, the strongest pace in four years, driven by improvements in telecommunications, financial services, and oil production.
More importantly in terms of long-term stability, inflation, while still high, has moderated consistently. From a peak of 34.6% in November 2024, it has more than halved to 16.05% in October 2025. This marks seven consecutive months of disinflation. Food inflation, the largest single component of the basket, fell to 13.12 per cent in October, down from 16.87 per cent in September and 21.87 per cent in August.
This significant, steady decline in inflation is restoring real purchasing power for households and businesses. It also demonstrates disciplined execution and Nigeria’s return to orthodox monetary policy.
We continue with determination to bring inflation down further. The current double-digit rate cannot be acceptable. Price stability is the foundation of sustainable growth. Our transition to an inflation-targeting framework is gaining traction. We have improved data analytics, strengthened communication, and ended monetary financing of fiscal deficits. These actions have strengthened monetary policy transmission and anchored expectations.
Our models project continued disinflation in 2026, helped by stronger domestic production, improved FX liquidity, and more disciplined liquidity management. As inflation moderates and becomes firmly anchored, we will calibrate the policy rate in line with evolving data.
Domestic and international observers alike have noted Nigeria’s “huge turnaround” in macroeconomic management. Our commitment remains clear: monetary policy will stay evidence-based, data-driven, and unwavering in its pursuit of price stability.
Perhaps the most visible sign of renewed confidence in our economy is the transformation of the foreign exchange market. Over the past year, we have sustained the unification of the multiple exchange-rate windows. Today, the once-crippling multi-billion dollar FX backlog has been fully cleared, restoring credibility and giving businesses the confidence to plan.
The introduction of the Nigerian Foreign Exchange Code has established clear rules for transparency, ethics, governance, and fair dealing among authorised dealers, while the deployment of the Electronic Foreign Exchange Management System (EFEMS), powered by Bloomberg BMatch, has transformed FX trading through mandatory order submission, real-time regulatory visibility, and enhanced price discovery.
Together, these reforms have reduced opacity and manipulation, and restored discipline to the market. The naira now trades within a narrow, stable range. The once-substantial gap between the official and parallel markets has shrunk to under 2%, down from over 60%.
Foreign capital inflows reached US$20.98 billion in the first ten months of 2025, a 70% increase over total inflows for 2024 and a 428% surge compared to the US$3.9 billion recorded in 2023, reflecting a clear resurgence in investor confidence.
Nigeria’s external sector strengthened decisively in 2025, with the current account balance rising over 85% to US$5.28 billion in Q2, up from US$2.85 billion in Q1. Bolstering our external buffers, foreign reserves reached US$46.7 billion by mid-November, the highest in nearly seven years, providing over 10 months of forward import cover and significantly enhancing the economy’s resilience.
What is most important here is that our FX reserves are being rebuilt organically—not by borrowing—but through improved market functioning, stronger non-oil exports, and robust capital inflows.
While oil production improved modestly to an average of 1.45–1.52 million barrels per day in 2025, the truly encouraging development is the strong performance of non-oil exports. Supported by ongoing reforms and greater exchange-rate flexibility, non-oil exports have grown by more than 18% year-on-year, reflecting rising competitiveness under a truly market-driven FX framework.
As with foreign investor inflows, diaspora remittances have also strengthened with confidence returning to official channels following enhancements in transparency, settlement efficiency, and reporting. Remittances increased by approximately 12% this year, and we expect this momentum to continue as the Non-Resident BVN, launched earlier this year, becomes more widely adopted in 2026.
We are committed to maintaining the current flexible exchange-rate framework that allows the naira to act as a shock absorber while limiting excessive volatility. To strengthen this framework further, we will shortly be unveiling the revised FX Manual to expand market participation and tighten documentation standards, enhance EFEMS surveillance, and ensure consistent implementation to avoid any possibility of policy reversal.
A functional, transparent and liquid fixed-income market is critical for effective monetary-policy transmission and for mobilising long-term domestic savings.
Working closely in the past year with the SEC and PENCOM, both of whom have issued complementary rules, the over-the-counter secondary market is transitioning to a more transparent and robust regulatory framework that better serves investors and market participants. These reforms are foundational steps towards ensuring that Nigeria’s financial markets can support deeper investment, accurate pricing, and stronger monetary-policy transmission.
We expect continued progress into the new year, as implementation strengthens and market participants adapt to the higher standards of disclosure and discipline required. The Central Bank of Nigeria will do everything necessary to protect the financial stability that is rewarding us with improved international investor sentiment.