The Senate on Thursday demanded that the Central Bank of Nigeria (CBN) produce a full and transparent explanation for the alleged non-remittance of N1.44 trillion in operating surplus to the federation account, even as the apex bank projected an increasingly positive outlook for Nigeria’s economy in 2025 and beyond.
The directive came during an engagement between the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru, which also served as the committee’s statutory briefing with the CBN at the National Assembly.
Abiru began with firm queries regarding the Auditor-General’s report before shifting into a comprehensive review of the country’s economic trajectory.
He stressed that restoring public confidence required a clear response from the CBN on the disputed surplus. While acknowledging the bank’s success in stabilising the foreign-exchange market, reducing inflation, and improving investor sentiment, he insisted that accountability must match performance.
“These positive indicators have not gone unnoticed globally. I commend the Bank and its leadership for the role played in earning the country favourable ratings from Fitch and S&P Global Ratings, reflecting improved investor sentiment, policy credibility, and macroeconomic stability,” he said.
He added that the committee expected a full account of the facts, corrective actions taken and safeguards to prevent future breaches.
Beyond the surplus query, the Senate demanded answers on the 45% Cash Reserve Ratio (CRR), the 75% CRR on non-TSA public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions, and the compliance of all CBN subsidiaries with parliamentary oversight. An update was also requested on the Financial Services Regulatory Coordinating Committee’s 2025 activities.
In his submission, CBN Governor Olayemi Cardoso delivered a broad appraisal, stating that Nigeria was experiencing renewed macroeconomic stability across all major indicators. He attributed gains to “bold monetary reforms, foreign-exchange market liberalisation and disciplined liquidity management since mid-2025,” which had earned international recognition. Headline inflation had declined seven consecutive months—from a peak of 34.6% in November 2024 to 16.05% in October 2025—the steepest and most sustained disinflation in more than a decade. Food inflation moderated to 13.12%, driven by better supply and a more predictable FX regime.
Cardoso stated that the domestic economy grew by 3.98% in Q3 2025 (compared to 3.86% in the same quarter of 2024), though slightly below the previous quarter. “Key contributors to the broad-based growth include crop production, ICT, real estate, and financial & insurance,” he said, describing the FX market as “fundamentally transformed.”
He noted the official-parallel FX market gap had shrunk to under 2%, from over 60% a year ago. The average FX rate rose to N1,442.92 per dollar (Nov 26), compared with N1,551.08 earlier in the year, credited to liquidity, the Electronic FX Matching System, and the Nigeria FX Code.
On reserves, Cardoso reported a rebound to $46.7 billion (Nov 14), providing 10.3 months of import cover — the highest level in seven years. Diaspora remittances surged by 66.7% (from $200m to around $600m monthly), while foreign capital inflows hit $20.98bn in ten months — 70% higher than in 2024, and over four times 2023 levels.
He confirmed the CBN had cleared the $7bn verified FX backlog, which restored credibility and investor confidence. Nigeria’s balance-of-payments deficit narrowed by over 90%, boosted by increased non-oil exports and better trade conditions.
On banking-sector stability, Cardoso said recapitalisation was progressing: 27 banks had raised new capital, 16 had met or exceeded thresholds ahead of the March 2026 deadline. ATM cash, digital payment oversight, cybersecurity, and enforcement actions had all improved. Cardoso noted that Nigeria now ranks among Africa’s most advanced digital payments markets, with eight of the continent’s nine fintech unicorns hailing from Nigeria.
Cardoso assured the CBN’s commitment to transparency and evidence-based policy. He projected single-digit inflation over the medium term, continued FX stability, and a robust banking sector. Success, he said, depended on close monetary-fiscal alignment.
After the public session, the meeting moved to a closed-door engagement—without response from the CBN on the committee’s queries.
The sun
