November 29, (THEWILL) — The governor, Central Bank of Nigeria (CBN), Olayemi Cardoso, has outlined the monetary policy priorities of the apex regulator for 2026, emphasising that there will be no return to governments deficit financing.
Cardoso, disclosed this at the Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, on Friday, November 28, 2025. He noted that the strategic priorities for 2026, will be defined by efforts to strengthen the banking system and protect depositors, deepen financial stability, modernise payments, and reinforce Nigeria’s economic resilience.
He explained that as the CBN turns its focus to 2026, the institution is committed to safeguarding the stability of the banking sector through rigorous supervision, stronger governance standards, and measures that support sustainable credit growth, emphasising that protecting depositors remains non-negotiable.
The governor said the Bank is equally determined to deliver what he described as “durable price stability”, noting that the inflation-targeting framework will be further refined, supported by advanced analytics capable of anchoring expectations and lowering inflation sustainably.
According to him, the CBN is also prioritising the modernisation of the country’s payment systems and the promotion of financial inclusion, pointing out that digital rails will be strengthened and contactless payments expanded across the economy.
He emphasised that fostering responsible fintech innovation will remain central to the Bank’s work in 2026. Cardoso explained that while the CBN intends to support the continued expansion of fintech activity, the institution will also place a premium on consumer protection, cybersecurity, financial integrity, stronger data-governance standards, stricter licensing conditions, and clearer guardrails for digital-asset experimentation.
He added that the CBN is intensifying efforts to build internal capacity by improving staff skills, streamlining processes, and removing bottlenecks in licencing and approvals to ensure a more agile and responsive institution.
Cardoso said the Bank will also deepen partnerships with regulators, industry stakeholders, and international institutions, noting that these collaborations are essential to reinforcing Nigeria’s position as a trusted and respected central bank.
“These priorities are not abstract aspirations; they are practical, measurable, and fully aligned with our mandate to safeguard monetary and financial stability”, he said.
Cardoso reiterated that the CBN will continue to steer monetary policy with discipline, anchored firmly in the core mandate of maintaining price stability.
According to him, stability remains the foundation of an economy where investment thrives, resources are allocated efficiently, and purchasing power is protected.
Looking ahead, he said the Bank will intensify engagement with stakeholders, strengthen collaboration with both domestic and international regulators, and continue to foster responsible innovation across the financial system. He added that the CBN will keep providing forward guidance, protect the integrity of financial markets, deploy technology and artificial intelligence to strengthen decision-making, and build institutional capacity to support an evolving and resilient economy.
Cardoso made it clear that the era of government deficit financing by the Central Bank has ended. He stressed that the discontinuation of direct deficit financing reflects the Bank’s commitment to monetary and fiscal discipline, insisting, “There will be no return to the practice of financing fiscal deficits by the Central Bank.”
He noted that the fiscal authorities are complementing this stance through significant institutional reforms, including the implementation of the Revenue Optimisation framework, the creation of a new National Revenue Agency, and upgrades to the Treasury Single Account.
Cardoso emphasised that all the measures were aimed at boosting revenue mobilisation and strengthening public financial management. He added that as Nigeria transitions toward a full-fledged inflation-targeting framework, the partnership between fiscal and monetary authorities will only deepen, ensuring that both policies work in harmony to deliver sustainable price stability.
He highlighted that Nigeria’s digital-finance transformation gathered remarkable momentum in 2025, driven by the CBN’s twin priorities of fostering innovation while safeguarding stability in the payments ecosystem.
Cardoso recalled that earlier in the year, the CBN extended its Payment System Vision roadmap to 2028 to accelerate the modernisation of payments infrastructure and bolster cybersecurity across the financial system.
The CBN boss disclosed that more than 12 million contactless payment cards are now in circulation, reflecting strong consumer adoption. He added that the Bank’s regulatory sandbox has grown to include more than 40 fintech innovators, enabling safe experimentation and responsible scaling of new digital-finance solutions.
He also pointed to the strong rebound in foreign-capital inflows, saying inflows reached US$20.98 billion in the first 10 months of 2025, representing a 70 percent increase over total inflows for 2024 and a 428 percent rise compared with the US$3.9 billion recorded in 2023. He described this as clear evidence of resurgent investor confidence.
He said Nigeria’s external sector recorded decisive progress in 2025, with the current-account balance rising by more than 85 percent to US$5.28 billion in the second quarter, up from US$2.85 billion in the first quarter. He added that foreign-exchange reserves climbed to US$46.7 billion by mid-November, the highest level in nearly seven years, providing more than 10 months of forward import cover and significantly strengthening the economy’s resilience.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
