As Cardoso Turns 3 at CBN, Reforms Shift Nigeria’s Financial System into New Gear

In his three-year tenure as Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has overseen a series of profound reforms aimed at reshaping the country's financial system. When Cardoso assumed office on September 22, 2023, Nigeria's financial system was facing numerous challenges, including a fragmented foreign exchange market, a depreciating naira, high inflation, and a banking sector operating with inadequate capital.

One of the key areas of focus for Cardoso was strengthening the banking sector's capital base. The CBN announced a recapitalisation programme in March 2024, setting new minimum capital requirements for banks with international authorisation, national banks, and regional banks. This resulted in 33 banks raising approximately N4.65 trillion in new capital, with 72.55% of the funds coming from domestic sources.

In addition to recapitalisation, Cardoso has implemented various reforms in the foreign exchange market. The CBN has moved towards a more market-driven system and dismantled some of the arrangements that had maintained the gap between the official and parallel rates. This has led to improved transparency and traceability of remittance flows, as well as increased access to foreign exchange for oil-exporting companies.

Other reforms undertaken by Cardoso include tightening payments regulation, modernising financial-market infrastructure, and stepping up defences against fraud, cyber threats, and financial crime. These efforts have contributed to a significant turnaround in Nigeria's financial stability and market confidence. The CBN's achievements have not gone unnoticed, with President Bola Ahmed Tinubu commending Cardoso's stewardship and the CBN being named Central Bank of the Year 2026 by Central Banking in London.