The Senate on Thursday demanded a detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus, even as the apex bank reported that the Nigerian economy has entered its most stable phase in more than ten years.
The demand was made during a statutory briefing by the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Tokunbo Abiru.
Abiru said the Auditor-General’s query on the unremitted funds required a full, clear and documented response, stressing that public confidence in monetary governance depends on strict accountability.
While acknowledging the CBN’s reported achievements in stabilising the foreign exchange market and reducing inflation, the committee chairman insisted that institutional responsibility must match economic progress.
He said the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective actions taken and reveal safeguards to prevent similar lapses in the future.
The CBN Governor, Mr Olayemi Cardoso, who appeared before the committee, presented an extensive review of current economic conditions, declaring that Nigeria was now experiencing renewed macroeconomic stability across key indicators.
Cardoso attributed the progress to bold monetary reforms, foreign exchange liberalisation and disciplined liquidity management introduced since mid-2025.
According to him, headline inflation declined for seven consecutive months, dropping from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, representing the steepest and longest disinflation trend in more than a decade.
Food inflation, he added, eased to 13.12 per cent, supported by improved supply conditions and greater exchange-rate stability.
The CBN governor said the foreign exchange market had been fundamentally transformed, noting that speculative attacks and arbitrage opportunities had largely disappeared.
He disclosed that the premium between the official and parallel market rates had fallen to below two per cent from over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 to the dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average in the first half of 2025.
Cardoso also announced that Nigeria’s external reserves had risen sharply to $46.7 billion, the highest level in nearly seven years, providing cover for over ten months of imports.
Diaspora remittances, he revealed, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025—70 per cent higher than in 2024 and more than four times the 2023 level.
He further confirmed that the CBN had fully cleared the $7 billion verified foreign exchange backlog, restoring investor confidence and strengthening Nigeria’s balance of payments position.
On banking sector stability, Cardoso said recapitalisation efforts were progressing smoothly, with 27 banks having already raised fresh capital and 16 meeting or exceeding new regulatory thresholds ahead of the March 31, 2026 deadline.
He also highlighted improvements in ATM cash availability, digital payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate raised further concerns over several policy decisions.
Abiru sought explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR imposed on non-Treasury Single Account public-sector deposits, foreign exchange forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, stressing that stronger inter-agency cooperation was needed to sustain public confidence in the financial system.
The session later moved into a closed-door meeting.
