By Ghazali Ibrahim
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, has commended the Central Bank of Nigeria (CBN) for its efforts in stabilising the economy, while urging banks to channel more credit to productive sectors to drive sustainable growth.
Abiru made the remarks during the committee’s statutory engagement with CBN Governor, Dr. Olayemi Cardoso, in Abuja, where lawmakers reviewed developments in monetary policy, the banking sector and the apex bank’s 2025 audited financial statements.
The senator said Nigeria had recorded encouraging improvements in macroeconomic stability since the committee’s last engagement with the CBN in December 2025, citing the moderation of inflation to 15.06 per cent in February 2026 and the subsequent reduction of the Monetary Policy Rate from 27 per cent to 26.5 per cent.
He attributed the gains to the CBN’s monetary tightening measures and praised the apex bank for improving transparency in the foreign exchange market, strengthening external reserves and narrowing the gap between official and parallel exchange rates.
Abiru also applauded the CBN’s banking sector recapitalisation programme, stricter prudential supervision, expansion of digital financial services and improvements in payment systems.
However, he stressed that stronger bank balance sheets must translate into increased financing for critical sectors of the economy.
“The true measure of a stronger banking system lies not merely in larger balance sheets, but in its capacity to mobilise savings efficiently and channel affordable credit to productive sectors such as agriculture, manufacturing, infrastructure, small and medium enterprises and technology,” he said.
The committee chairman further backed the CBN’s recent regulatory actions affecting 46 microfinance banks, describing them as necessary to safeguard the integrity and stability of Nigeria’s financial system.
While expressing support for the apex bank’s proposed regulatory reforms for financial holding companies, Abiru urged the CBN to ensure that tighter regulations do not impose excessive compliance burdens that could weaken the competitiveness of Nigerian financial institutions.
The Senate committee also scrutinised the CBN’s 2025 audited financial statements, acknowledging the bank’s return to group profitability and progress in resolving historical Ways and Means obligations.
Lawmakers, however, sought further clarification on the securitisation of legacy obligations, major expenditure items, foreign securities lending transactions, liquidity management costs and statutory remittances to the Federal Government.
Responding, CBN Governor Olayemi Cardoso said coordinated monetary and fiscal reforms had helped strengthen Nigeria’s macroeconomic stability despite global economic challenges.
He added that the country’s external reserves rose to $52.73 billion as of July 9, 2026, from $48.88 billion in January, reflecting sustained confidence in the economy.
