CBN Puts FX Reforms, Recapitalisation and Financial Inclusion at Centre of Growth Plan

The Central Bank of Nigeria says its foreign exchange market reforms, banking sector recapitalisation and financial inclusion drive are central to strengthening the financial system and supporting sustainable economic growth.

Hakama Sidi Ali, Director of the CBN’s Stakeholder Engagement and Institutional Relations Department, said this at the CBN Listens Programme in Ibadan, Oyo State, on Thursday. She spoke on the theme: “Towards a Robust, Resilient and Inclusive Financial System for Sustainable Economic Growth.”

Reforms under Cardoso

Sidi Ali said the reforms under CBN Governor Olayemi Cardoso are aimed at strengthening financial markets, improving transparency, deepening financial inclusion and positioning the country for sustainable economic growth.

She listed the measures to include the unification of foreign exchange rates, recapitalisation of the banking sector, introduction of the non-resident Bank Verification Number and the B-Match system for foreign exchange trading.

Other initiatives include the Nigeria Payments System Vision 2028 and the Nigerian Overnight Financing Rate, developed with the Financial Markets Dealers Association. She said the NOFR provides a transparent, market-based benchmark for short-term funding transactions and brings Nigeria’s money market infrastructure closer to international best practices.

She also cited the implementation of a 75 per cent Cash Reserve Ratio on non-Treasury Single Account public sector deposits as a measure to improve liquidity management and mitigate inflationary risks.

Recapitalisation and inclusion

On recapitalisation, Sidi Ali said the exercise had strengthened the capacity, resilience and competitiveness of financial institutions, while other reforms were designed to improve confidence in the financial system.

She said sustainable economic growth cannot be achieved without expanding access to financial services, especially for underserved and unserved communities.

“Economic growth cannot be sustainable unless it is inclusive,” she said, describing financial inclusion as a critical pillar of national development.

She added that the CBN was working with financial institutions, financial technology companies, mobile money operators, development partners and state governments to extend financial services to more Nigerians. According to her, wider access would create economic opportunities, support entrepreneurship, reduce poverty and promote shared prosperity.

Stakeholder feedback

Sidi Ali said the CBN Listens Programme gives the bank a platform to engage stakeholders, explain its policies, address misconceptions and receive feedback on issues affecting individuals, businesses and communities.

The reforms matter for the naira and Nigerian businesses because they touch FX trading, bank capital and access to finance, three areas that shape costs and confidence across the economy.