When Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria (CBN) on September 22, 2023, the institution faced intense scrutiny over the foreign exchange market, banking system health, monetary policy credibility, and confidence in Nigeria's financial system. Cardoso has since pursued a broad reform agenda touching every major area of the financial system. The reforms have attracted international recognition, including the CBN being named Central Bank of the Year by Central Banking in March 2026.
A key component of the Cardoso reforms has been the recapitalisation of banks. On March 28, 2024, the CBN announced new minimum capital requirements for banks, setting the minimum for commercial banks with international authorisation at N500 billion, national banks at N200 billion, and regional banks at N50 billion. By March 31, 2026, 33 banks met the revised requirements, raising approximately N4.65 trillion in fresh capital, with about 72.55 per cent of the funds sourced domestically.
The CBN has also strengthened governance around the country's biggest banks. In September 2025, it introduced a succession framework for Domestic Systemically Important Banks (DSIBs), ensuring that the departure or replacement of a chief executive does not create uncertainty around the institution's leadership or operations. Additionally, the CBN approved the Bank of Industry's Non-Interest Banking Window in February 2026, creating room for financing based on non-interest principles.
The CBN has moved towards a more market-driven FX system, improving transparency and addressing outstanding obligations. The Bank cleared a verified backlog of about $7 billion in foreign exchange obligations, reducing volatility and improving investor confidence. External reserves increased from $33.6 billion in October 2023 to $37.9 billion by July 2024. On May 15, 2026, the CBN launched the fourth edition of its Foreign Exchange Manual, providing an updated framework for FX market operations.
The CBN has introduced measures affecting Bureau de Change operators, giving licensed BDCs structured access to foreign exchange through authorised dealer banks. The FX BDC Purchase Tracker was introduced to strengthen monitoring, transparency, and compliance. International Oil Companies were permitted to repatriate 100 per cent of their export proceeds through authorised dealer banks on March 25, 2026, improving the efficiency of the FX market.
The diaspora remittance market has come under greater scrutiny, with new naira-settlement requirements for International Money Transfer Operators introduced on March 24, 2026, making remittance flows more transparent and traceable. The CBN has also expanded monitoring of crude oil export proceeds by allocating additional export terminals for closer oversight of the oil and gas export chain.
Nigeria's payments system has undergone significant transformation, with the CBN combining digital expansion with stronger regulation. The Bank inaugurated the committee for Payments System Vision 2028 in September 2025, with emphasis on interoperability, security, inclusion, innovation, trust, and collaboration. The CBN has revised its agent-banking guidelines, introducing stronger requirements around consumer protection, agent supervision, and transaction controls.
Key points
- The CBN's reforms have led to a significant increase in external reserves and a more market-driven FX system.
- The bank recapitalisation exercise has resulted in 33 banks meeting the revised requirements, raising approximately N4.65 trillion in fresh capital.
- The CBN's payments system vision aims to build a more secure, inclusive, and innovative payments environment in Nigeria.
