CBN Targets Stronger Lending, $1bn Monthly Diaspora Inflows to Boost Economy

• The Central Bank of Nigeria has directed banks to channel the gains from recapitalisation into financing productive sectors of the economy.

• CBN Governor Olayemi Cardoso said the regulator’s focus has shifted to stronger governance, risk management and economic growth.

• He also revealed plans to increase monthly diaspora remittances to $1 billion while highlighting progress in inflation and foreign exchange reforms.

• Lawmakers, however, pressed the apex bank on inflation, consumer protection, audited accounts and the government’s Ways and Means advances.

July 23, () — The Central Bank of Nigeria (CBN) has said banks must channel the benefits of their completed recapitalisation into greater support for the country’s productive sectors, as the regulator shifts its attention from capital raising to economic growth.

CBN Governor Olayemi Cardoso made the remarks while briefing the Senate Committee on Banking, Insurance and Other Financial Institutions on the bank’s activities since the start of the year.

“With recapitalisation now completed, our focus has shifted towards ensuring that stronger capital translates into improved governance, enhanced risk management and support for productive economic activities,” Cardoso said.

The governor said the CBN’s priorities now include strengthening financial system stability and improving the flow of credit to sectors that can drive economic expansion.

Cardoso unveils $1bn monthly diaspora remittance target

He also disclosed that the apex bank aims to increase monthly diaspora remittances through official channels to $1 billion before the end of the year as part of efforts to strengthen foreign exchange inflows and reinforce macroeconomic stability.

Cardoso told lawmakers that reforms introduced over the past year had helped improve investor confidence, stabilise the foreign exchange market and support broader economic resilience despite global economic headwinds.

According to him, the first half of 2026 saw continued consolidation of macroeconomic gains achieved in 2025 through sustained monetary reforms and closer coordination between fiscal and monetary authorities.

He said inflation had resumed its downward trajectory after a temporary increase linked to the Middle East crisis, easing from 15.93% in May to 15.91% in June.

“This outcome demonstrates the effectiveness of our monetary policy stance in containing second-round inflationary pressures and anchoring inflation expectations. We remain fully committed to restoring price stability and achieving single-digit inflation over the medium term,” Cardoso said.

The CBN governor also highlighted the launch of the Payments System Vision 2028, improvements in Nigeria’s sovereign credit ratings by Fitch, Moody’s and S&P, and continued foreign exchange reforms aimed at increasing market transparency and reducing speculative activity.

During the session, members of the Senate committee questioned CBN officials on inflation, bank recapitalisation, foreign exchange reforms, consumer protection, the bank’s audited financial statements and the Federal Government’s Ways and Means advances before proceeding to a closed-door meeting.