The Senate yesterday praised the Central Bank of Nigeria (CBN) for what it called its commendable progress in Nigeria’s financial and monetary sectors in the past six months.

The Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Adetokunbo Abiru (APC, Lagos East), spoke during an interactive session with CBN governor, Dr. Olayemi Cardoso, in Abuja.

Abiru emphasised the importance of such engagements, saying the CBN plays a critical role in maintaining macroeconomic stability and fostering a sound financial system.

The committee chairman said the session was vital to enhancing transparency, ensuring adherence to statutory mandates, and improving policy communication.

He noted that key economic indicators showed noticeable improvement since the committee’s last meeting with the CBN last December.

“Since our last engagement, we have observed encouraging trends, including a moderation in the inflation rate, which declined to 22.97 per cent in May 2025 from 23.71 per cent in April.

“We’ve also seen a gradual increase in external reserves and relative stability in the exchange rate, with a notable convergence between official and parallel market rates,” he said.

Abiru attributed the positive trends to CBN’s reform measures, including the introduction of the FX Matching System and FX Code, which have improved transparency and discipline in the foreign exchange market.

The committee also lauded the Monetary Policy Committee of the CBN for maintaining the Monetary Policy Rate at 27.5 per cent during its February and May 2025 meetings. Abiru noted that this marked a shift from the aggressive rate hikes of 2024 and signaled a more measured approach to balancing inflation control and economic growth.

The Senate committee also lauded the CBN’s regulatory flexibility in granting limited forbearance to Deposit Money Banks amid the ongoing recapitalisation exercise. According to Abiru, this policy reflects a pragmatic approach to easing transitional challenges for banks without exposing the system to undue risk.

The committee also praised the renewal of the bilateral currency swap agreement between Nigeria and China.

Abiru said it strengthens local currency trade settlements and supports efforts to diversify Nigeria’s external reserves away from overreliance on the U.S. dollar.

Other notable initiatives acknowledged by the committee include the launch of the Non-Resident Bank Verification Number (NRBVN) framework.

The Lagos East senator said the move enhances Know-Your-Customer (KYC) protocols and improves access to banking for Nigerians abroad, while promoting financial system integrity.

Praising the CBN’s performance, Abiru noted that some areas still required attention and would be discussed during an executive session with the CBN governor.

Responding, Cardoso outlined key achievements of the bank over the period, linking them to the broader national goal of achieving a $1 trillion GDP by 2030.

He emphasised the importance of the ongoing banking sector recapitalisation, describing it as a strategic move to strengthen the financial system and drive economic growth.