The Senate on Thursday demanded a detailed explanation from the Central Bank of Nigeria (CBN) over the apex bank’s alleged failure to remit N1.44 trillion of operational surpluses as captured in queries raised by the Office of the Accountant-General of the Federation.

The Senate Committee on Banking, Insurance and Other Financial Institutions made the call in Abuja as it interfaced with the Governor of the bank, Mr Olayemi Cardoso.

The committee, which is chaired by Senator Abiru Mukhail Adetokumbo, asked for the explanation as Cardoso defended the country’s recovery, saying that much progress had been achieved under President Bola Tinubu.

“Public trust in monetary governance hinged on a clear and unambiguous response”, Adetokumbo noted at a session held at the National Assembly.

Although he lauded the CBN’s efforts in stabilising the foreign-exchange market and reducing inflation, the lawmaker maintained that “such progress must be matched by uncompromising accountability.”

He said the committee expected “a full account of the facts, corrective actions taken, and institutional safeguards to prevent future breaches.”

Cardoso, while addressing the committee, spoke more elaborately on interventions that had turned around the economy, leading to renewed macroeconomic stability across key indicators.

“The combination of bold monetary reforms, foreign-exchange market liberalisation and disciplined liquidity management since mid-2025 had produced outcomes attracting international recognition”, he submitted.

The CBN governor highlighted that headline inflation had fallen for seven straight months, from 34.6% in November 2024 to 16.05% in October 2025, marking the steepest and most sustained disinflation in over ten years.

He added that food inflation also moderated to 13.12%, supported by improved supply conditions and a more stable exchange-rate regime.

Describing the foreign-exchange market, Cardoso said it had been “fundamentally transformed,” with speculative attacks and arbitrage opportunities largely eliminated.

The gap between the official and parallel markets had narrowed to less than 2%, compared to over 60% a year earlier.

Cardoso reported that the naira had strengthened to N1,442.92 per dollar at the Nigerian Foreign Exchange Market as of November 26, better than the N1,551 average recorded in the first half of the year.

He credited this to “improved liquidity, the deployment of the Electronic FX Matching System and the implementation of the Nigeria FX Code.”

“A key highlight was the rise in external reserves to $46.7 billion as of November 14, the highest in nearly seven years, enough to cover 10.3 months of imports.

“Diaspora remittances increased from $200 million to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 percent higher than in 2024 and more than quadruple the 2023 figure”, the governor said.

He confirmed that the CBN had cleared the $7 billion verified foreign-exchange backlog, calling it “a decisive action that restored Nigeria’s market credibility and re-anchored investor sentiment.”

He explained that the balance-of-payments deficit had shrunk by over 90%, with the current account strengthened by rising non-oil exports and favorable trade conditions.

Cardoso also pointed to global endorsements of Nigeria’s reforms, including S&P’s upgrade of the country’s outlook from Stable to Positive, Fitch’s affirmation of the sovereign rating, and removal from the Financial Action Task Force’s Grey List.

On banking-sector stability, he reported progress in the recapitalisation drive, noting that “27 banks have raised fresh capital, with 16 already meeting or exceeding new thresholds ahead of the March 31, 2026 deadline.”

Cardoso also highlighted improvements in ATM cash availability, digital payment oversight, cybersecurity, and enforcement actions against erring banks.Still, the Senate pressed for further clarifications, with Abiru requesting explanations on the “sustained 45 percent Cash Reserve Ratio (CRR), the 75 percent CRR on non-TSA public-sector deposits, foreign-exchange forward settlements, circulation of mutilated naira notes, excessive bank charges, failed electronic transactions, and CBN subsidiaries’ compliance with parliamentary oversight.”

Cardoso reassured lawmakers that the CBN would pursue transparency and evidence-based policies. He projected “a positive outlook for 2026, with further moderation in inflation, continued FX stability, and a resilient banking sector capable of supporting long-term growth.”

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