MONETARY POLICY REFORMS DELIVER RESULTS AS NIGERIA STABILISES

Abuja, Nigeria — Thursday, January 23, 2026

Hard reforms are beginning to show results in Nigeria, as inflation eases, the currency steadies, and investors take a second look at Africa’s largest economy.

NTA correspondent Musa Abubakar reviews the key monetary reforms that shaped 2025, a year that emerged as a defining period for Nigeria’s monetary policy journey.
The year was marked by bold reforms, tough decisions, and a renewed push to restore price stability, rebuild confidence in the financial system, and support a sustainable economic recovery. At the heart of these reforms was a firm commitment to discipline and data-driven decision-making.
Throughout 2025, the Monetary Policy Committee (MPC) maintained a tight policy stance, raising interest rates to tame inflationary pressures fueled by rising food prices, exchange-rate pass-through, and global supply disruptions. These measures are beginning to yield results. While inflation has shown signs of easing, food prices remain a major concern for Nigerian households.

To restore confidence in the foreign exchange market, the Central Bank of Nigeria (CBN) rolled out far-reaching reforms. Central among them was the Nigeria Foreign Exchange Code, designed to enforce ethical conduct, improve transparency, and strengthen market discipline among FX dealers.
Clearer FX reporting and greater transparency in remittance inflows have boosted liquidity, reduced speculation, and reinforced a more market-reflective exchange-rate regime, creating conditions for a more stable macroeconomic environment and renewed investor confidence.