October 20, 2025/CSL Research
Speaking at the conclusion of the IMF/World Bank Spring Meetings, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, noted that investor confidence in the country is strengthening, driven by ongoing structural and monetary reforms. We note that these reforms have played a key role in stabilising the local currency, easing inflationary pressures, and improving transparency in monetary policy operations.
The improvement in investor sentiment reflects a broader shift in perception among both domestic and foreign market participants, who increasingly view recent policy measures as a return to orthodox monetary management.
In particular, the CBN’s decisive steps to regularise and enhance transparency in the foreign exchange (FX) market such as clearing verified FX backlogs, unifying exchange rate windows, and introducing an electronic FX platform, have been instrumental in rebuilding confidence. Furthermore, the tight monetary policy stance that was sustained for over 12 months, aimed at curbing inflationary pressures, has strengthened the credibility of the apex bank. These measures, together with positive rating actions by international credit agencies, have contributed to stronger portfolio inflows into the country compared to last year.
On the sidelines of the IMF/World Bank Spring Meetings, Governor Olayemi Cardoso signed a Memorandum of Understanding (MoU) with the National Bank of Angola (BNA), marking a significant milestone in strengthening bilateral cooperation between the two central banks.
The MoU encompasses several areas of mutual interest, including exchange control, financial markets and foreign reserves management, currency operations, economic research, and monetary and financial statistics, as well as the management of payment, clearing, and settlement systems. In addition, the agreement aims to enhance collaboration in financial sector development, banking supervision and regulation, and cross-border oversight of financial institutions, including due diligence processes where applicable. We believe this partnership represents a positive step towards deepening regional monetary cooperation in Africa, in line with the objectives of the African Continental Free Trade Area (AfCFTA) framework.
Click here to download full report: CSL Nigeria Daily – 20 October 2025 – Monetary Policy.pdf
