CBN Highlights FX Reforms, Bank Recapitalisation and Financial Inclusion Drive

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to strengthening the country’s financial system through foreign exchange (FX) market reforms, banking sector recapitalisation and initiatives aimed at expanding financial inclusion.

The apex bank said the reforms are designed to improve transparency in financial markets, strengthen the resilience of financial institutions and create an enabling environment for sustainable economic growth.

The Director of the CBN’s Stakeholder Engagement and Institutional Relations Department, Hakama Sidi Ali, disclosed this during the bank’s CBN Listens Programme held in Ibadan, Oyo State, on Thursday.

Speaking on the theme, “Towards a Robust, Resilient and Inclusive Financial System for Sustainable Economic Growth,” Sidi Ali said the bank remained committed to maintaining monetary and financial system stability while improving access to financial services across the country.

FX Market Reforms Target Greater Transparency

According to the CBN, measures introduced to reform the foreign exchange market include the unification of exchange rates and the introduction of the B-Match system for FX trading.

The initiatives are intended to improve transparency, strengthen market efficiency and enhance confidence in Nigeria’s foreign exchange market.

The bank also highlighted the introduction of the non-resident Bank Verification Number (BVN), which is designed to improve banking access for Nigerians living abroad.

Other measures include the Nigeria Payments System Vision 2028, which seeks to advance the country’s payments infrastructure, and the Nigerian Overnight Financing Rate (NOFR), developed in collaboration with the Financial Markets Dealers Association.

Sidi Ali explained that the NOFR provides a transparent, market-based benchmark for short-term funding transactions, bringing Nigeria’s money market infrastructure closer to international best practices.

The CBN also pointed to the implementation of a 75 per cent Cash Reserve Ratio (CRR) on non-Treasury Single Account public sector deposits as part of its efforts to manage liquidity and mitigate inflationary pressures.

Bank Recapitalisation Strengthens Financial Institutions

The CBN said the banking sector recapitalisation exercise had improved the capacity, resilience and competitiveness of financial institutions.

The reform is expected to strengthen banks’ ability to withstand economic shocks, support businesses and provide financing for productive activities.

According to the bank, recapitalisation remains an important component of broader efforts to build a more stable financial system capable of supporting Nigeria’s long-term economic ambitions.

The apex bank noted that the reforms were also designed to improve confidence in the financial sector and strengthen its capacity to respond to changing economic conditions.

CBN Intensifies Financial Inclusion Efforts

Beyond foreign exchange and banking reforms, the CBN identified financial inclusion as a critical requirement for sustainable economic development.

Sidi Ali stressed that economic growth would be difficult to sustain without expanding access to financial services, particularly among underserved and unserved communities.

She said the bank was collaborating with financial institutions, financial technology companies, mobile money operators, development partners and state governments to extend financial services to more Nigerians.

According to her, improving access to financial services could create economic opportunities, encourage entrepreneurship, reduce poverty and promote shared prosperity.

The initiative is expected to support individuals and businesses that have limited access to formal banking services, helping them participate more effectively in the economy.

Stakeholder Engagement Remains a Priority

The CBN also emphasised the importance of continuous engagement with stakeholders in implementing its financial sector policies.

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

She noted that sustained engagement would help improve public understanding of the bank’s policies while enabling the institution to respond more effectively to concerns within the financial system.

The CBN maintained that collaboration among regulators, financial institutions, businesses and other stakeholders would be essential to sustaining the gains of its ongoing reforms.

Outlook

Nigeria’s financial sector reforms are aimed at building a more transparent, resilient and inclusive financial system. However, their long-term impact will depend on effective implementation, sustained regulatory oversight and the ability of financial institutions to translate policy changes into tangible benefits for businesses and households.

By combining foreign exchange market reforms, stronger banking institutions and broader access to financial services, the CBN is seeking to position the financial system as a stronger driver of investment, entrepreneurship and sustainable economic growth.