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CBN’S ECONOMIC REFORMS WIN IMF PRAISE AMID SIGNS OF DURABLE RECOVERY

By Dr. Ibrahim Modibbo After years of economic volatility and uncertainty, the International Monetary Fund (IMF) in its latest Article IV Consultation affirmed a new reality about Nigeria’s economy under the Tinubu administration. The IMF declared in clear terms that Nigeria is making meaningful progress following a series of significant structural reforms to restore financial discipline and credibility. The IMF commended the Tinubu administration for its bold and politically difficult policies that have improved macroeconomic stability and enhanced resilience. The multilateral financial institution named the critical pillar of Nigeria’s economic reset and resurgence as the restoration of the independence being enjoyed by the Central Bank of Nigeria (CBN) under Governor Yemi Cardoso. Reeling from years of excessive fiscal influence for deficit financing, the Central Bank of Nigeria has under Cardoso curtailed the use of the “ways and means” facility, which ought to be an emergency funding channel, but was abused and eventually led to the advances ballooning beyond statutory limits. As of April 2025, the CBN had cut the advances by nearly 90 percent, demonstrating what the IMF called the “discontinuation of deficit monetisation” and a step to “strengthen central bank governance to set the institutional foundation for inflation targeting.” Also, the IMF acknowledged that the CBN’s commitment to price stability is yielding tangible and positive results, with headline inflation having peaked above 40 percent, dropping to 22.9 percent in May 2025. Specifically, the IMF noted that the CBN is “appropriately maintaining a tight monetary policy stance, which should continue until disinflation becomes entrenched.” Another plus, that the IMF identified are the reforms initiated by the apex bank in the foreign exchange market that supported price discovery and liquidity. Commendably, the CBN, under the leadership of Governor Cardoso, had dismantled the long-standing multiple exchange-rate regime, replacing it with a “willing-buyer, willing-seller” framework supported by a digital trading platform (B-Match). The results have been anything but transformative. As the IMF noted, “gross and net international reserves increased in 2024, with a strong current account surplus and improved portfolio inflows.” It added that the FX premium, or what is understood as the gap between the official and parallel markets, has fallen from over 60 percent to below 3 percent. This has resulted in foreign inflows surging to $6.9 billion in Q1 2025, while external reserves climbed to a peak of $40.9 billion at the end of 2024, providing over eight months of import, well above benchmark thresholds. The IMF attested that “reforms to the foreign exchange market and foreign exchange interventions have brought stability to the naira.” In January 2025, Nigeria successfully made a remarkable re-entry to the Eurobond market, its first issue in four years, reflecting, according to the IMF “a strengthened investor confidence and a resumption of portfolio inflows.” The IMF further gave a nod to the CBN’s policy initiatives to strengthen the banking system, including the ongoing process of increasing the’ minimum capital of commercial banks. The international finance institution endorsed the CBN’s efforts to boost financial inclusion and promote capital market development. It admitted that the CBN’s recapitalisation plan will see the minimum capital of banks increasing significantly by March 2026. This move is designed to ensure banks can absorb future shocks, deepen credit access, and support the Tinubu administration’s vision for a $1 trillion economy. Simultaneously, the Governor Cardoso’s led CBN is expanding access to banking services for previously excluded demographics, through digital platforms and financial literacy programmes, such as the Women’s Financial Inclusion Initiative (Wi-Fi). According to the IMF assessment, the Fund welcomed the progress made by the CBN in strengthening the AML/ CFT framework, it’s anti-money laundering policies and the dedication in combatting the financing of terrorism. It commended the resolve of the apex bank in tackling the remaining weaknesses that will allow Nigeria exit the FATF grey list, a designation for jurisdictions under increased monitoring by the Financial Action Task Force due to gaps in their anti-financial crime regimes. Further significant challenges remain. Inflation, though declining, remains a burden. Infrastructure deficits, insecurity, and fiscal slippages could derail progress. The Fund “highlighted the importance of tackling security, red tape, agricultural productivity, infrastructure gaps, including boosting electricity supply, as well as improved health and education spending, and making the economy more resilient to climate events.” In spite of all the positives recorded by the CBN under Cardoso, the IMF said more work needs to be done to ensure that the country establishes a strong foundation for sustained and inclusive growth. It advocated the tightening of fiscal, monetary and exchange rate reforms that have contributed to macroeconomic balances. The IMF also noted that in light of the challenges posed by an evolving global economic landscape, the CBN needs to put in place a nimble policymaking framework to navigate the fast-moving and volatile environment, including maintaining a strong policy coordination and communication. Reflecting on the IMF report, Cardoso commented, saying “at a time of global uncertainty, this assessment reaffirms that responsible, forward-looking policy choices matter. It affirms that Nigeria is regaining credibility, anchoring expectations, and laying the foundation for inclusive, long-term growth. It is both an encouragement to stay the course, and a reminder that resilience and prosperity require continued discipline and vision.” Similarly, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, while reacting to the IMF assessment, echoed Cardoso’s optimism, rgarding the ongoing reforms and the progress achieved over the past two years. He said “these reforms have contributed to notable improvements in Nigeria’s fiscal and external positions, bolstering investor confidence and strengthening the resilience of the economy.” The finance minister welcomed the IMF’s acknowledgement of advancements in the agricultural sector, particularly increased food production, which has contributed to moderating inflation. “As of May 2025, headline inflation eased to 22.9%, while food inflation declined to 21.4%—both improvements from the higher levels recorded during the IMF mission. IMF’s positive outlook, affirms that Nigeria’s economic reforms have positioned the country to better withstand external shocks,” Edun added, giving credence to the remarkable achievements recorded

CARDOSO, CBN SHINE AT NAIRAMETRICS CAPITAL MARKET CHOICE AWARDS

Akpo Ojo The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has been conferred with an honorary award at the maiden Nairametrics Capital Market Choice Awards, held in Lagos. Presenting the honorary award to Mr. Cardoso, the Founder/CEO of Nairametrics, Mr. Ugo Obi-Chukwu, said the award was in recognition of Cardoso’s transformative leadership and strategic contributions to Nigeria’s financial and capital markets Obi-Chukwu noted that under his leadership, the CBN has pursued reforms which have transformed the financial sector, restored investor confidence, deepened market participation, and fostered long-term economic resilience. In addition to the individual recognition, the Central Bank of Nigeria also won the “Market Reform Initiative of the Year” award, a testament to the bank’s continued efforts to drive systemic reforms and innovation within the financial ecosystem. According to the organisers, “the CBN’s recent policy interventions aimed at strengthening monetary transparency, investor confidence, and financial market stability earned it the distinguished award”. Receiving the award on behalf of the Cardoso and the CBN, the bank’s Director, Banking Supervision Department, Olubukola Akinwunmi, expressed gratitude to Nairametrics for the award and urged all stakeholders to continue striving for transparency to ensure stability in the financial system. Other honorary award recipients were the Governor of Lagos State, Mr. Babajide Sanwo-Olu; the Minister of Industry, Trade and Investment, Jumoke Oduwole; the Director General, Securities and Exchange Commission (SEC), Emomotimi Agama; and the President, Capital Market Academics of Nigeria, Prof Uche Uwaleke. Posthumous awards were also conferred upon the trio of the late Chief Akintola Williams, Nigeria’s first chartered accountant; the late Chief Subomi Balogun, pioneer banker; and the late Mrs.Florence Seriki, a pioneering female tech entrepreneur. The event featured 25 award categories and brought together key players from across the financial services sector to celebrate excellence, resilience, and leadership that are shaping the future of Nigeria’s capital market. Meanwhile, a public affairs analyst, Dr. Ibrahim Modibbo, has congratulated Cardoso and the apex bank for the honour bestowed on them He described the awards as well deserving and an acknowledgement of the reforms orchestrated by Cardoso since his appointment as the CBN governor by President Bola Tinubu.

CBN 2024 FINANCIAL PERFORMANCE AN INDICATOR CARDOSO’S TWERKING YIELDING RESULTS

By Dr. Ibrahim Modibbo The Central Bank of Nigeria (CBN) under the able leadership of Governor Yemi Cardoso has released the apex bank’s 2024 financial statements. The results reflect the bank’s commitment to economic stability, sound policy implementation, and strategic financial management. The financial performance further highlights improvements in external reserves, asset quality, cost efficiency and overall bottom-line improvement. An indicator of Cardoso’s policy direction being on the right track is manifested by the CBN posting in its latest financial statement showing the country’s external reserves growing from $36.6billion in 2023 to $38.8billion in 2024. This is phenomenal achievement is largely attributable to the apex bank’s improvement in accretion to external reserves from portfolio investors, diaspora remittances and the federal government receipts following improved confidence in the Nigerian economy, facilitated by better coordination with the Nigerian National Petroleum Company (NNPC) and diaspora engagement strategies. Another contributory factor is the proper investment management decisions taking by the CBN governor, aimed at boosting the reserves of the bank. This glowing performance reflects the CBN’s firm commitment to external sector stability, ensuring Nigeria is better positioned to meet its international obligations, stabilize the naira, and boost macroeconomic confidence. Remarkably, the CBN fianancial statement also showed that the bank’s bottom-line improved from a deficit position of ₦1.3trillion in 2023 to a surplus of ₦165billon in 2024. This turnaround is attributable to a direct consequence of apex bank’s effective containment of expenditure, gains on investments made by the bank and increased income from foreign exchange transactions under the Cardoso regime. The financial statement further showed a notable reduction in loans and receivables from ₦16.1trillion to ₦11.9trillion, due primarily to significant recoveries from earlier intervention lending programmes; a deliberate policy shift away from previous intervention lending and monetary financing through ways and means in line with the bank’s new stance on allowing market mechanisms to drive credit allocation and financial sector development. To reflect Cardoso’s enthroning of a cost-conscious culture at the CBN, the apex bank adopted a strategy of optimizing and streamlining it’s operating expenses in 2024, through strategic cost rationalization initiatives, including reduction in non-essential spending and streamlined operations across regional branches and departments. Furthermore, in line with the Financial Reporting Council (FRC) regulatory requirement on ICFR, it is worthy to note that the Central Bank was able to carry out an assessment of its internal controls which was further certified effective by the joint external audit team. This approach resulted in enhanced transparency and accountability in financial reporting, strengthening institutional governance and internal risk controls, and aligning with international best practices in central bank operations As a testament to the effectiveness of this initiative, the joint external auditors issued an independent assurance report declaring the CBN’s ICFR framework to be “effective” for the 2024 reporting period. However, it wasn’t all cheering news all the way because while the Central Bank of Nigeria’s 2024 financial results reflect operational improvements, some expenditure lines posed challenges. One of the notable upticks in the apex bank’s expenses in 2024 was related to liquidity management operations. These costs rose to ₦4.5trillion from ₦1.5trillion in 2023. This increase can be traceable to the tightening monetary policy stance adopted by the CBN governor to combat inflationary pressures throughout the year. In pursuit of that objective, the CBN conducted more frequent and higher-value Open Market Operations (OMO) to mop up excess liquidity arising from fiscal injections at a significant cost. This is a huge responsibility CBN is carrying out on behalf of the federation, whereas in some jurisdictions, this cost is borne by the government. The financial statements also reflect an increase in the loss on settled derivative contracts during the year from ₦6.3trillion in 2023 to ₦13.9trillion in 2024. This development is a direct consequence of the high volume of derivative contracts settled by the apex bank in 2024. These are legacy transactions which the Cardoso management met on resumption of office. This proactive settlement effort was undertaken as part of management’s broader strategy to reduce outstanding foreign exchange liabilities, thus lowering its FX exposure, boost net foreign reserves, thereby improving Nigeria’s external buffer and investor confidence, restoring credibility to Nigeria’s forward markets and address legacy obligations transparently. It can be said that the improved performance of the Central Bank of Nigeria in 2024 is not coincidental but a product of deliberate, and strategic management efforts undertaken by Governor Cardoso. The bank’s leadership has reinforced governance and accountability, instilling operational discipline in the running of the CBN. It has also pursued a balanced monetary policy stance, ensuring price and financial system stability. These reforms enunciated by Governor Cardoso since his appointment by President Bola Tinubu have collectively repositioned the CBN as a credible monetary authority, with its 2024 financial results serving as proof of its unwavering resolve to support the economic recovery programme of the current administration, safeguard financial stability, and build public trust. Dr. Ibrahim Modibbo is a public affairs analyst and writes from Abuja.

NIGERIA TARGETS SINGLE-DIGIT INFLATION, JOB CREATION UNDER TINUBU’S REFORM AGENDA

The Federal Government has announced plans to reduce the inflation rate to single digits and create more jobs for Nigerians. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known during a press conference in Washington D.C., United States, as part of activities marking the end of the 2025 International Monetary Fund and World Bank Spring Meetings. Edun said the government is collaborating with development partners like the World Bank to create jobs locally, empower youths, and support them through essential infrastructure, including digital infrastructure, access to data, internet, and fibre optic networks. “The objective is to create jobs locally, empower youths, and support them through essential infrastructure,” he stated. The Minister noted that the country’s unemployment rate has dropped to 4.3 percent in the second quarter of 2024 from 5.3 percent in the first quarter of 2024. He attributed the progress to President Bola Tinubu’s reform agenda, saying “the results are commendable.” Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, also spoke at the press conference, acknowledging the impact of inflationary pressures on the country. “We recognise that inflation remains the most disruptive force to the economic welfare of Nigerians,” he said. Cardoso assured that the government’s policy stance is firmly focused on bringing inflation down to single digits in a sustainable manner over the medium term. Cardoso highlighted the positive outcomes of the country’s reforms, saying “the nation was a reference point of how reforms could change the economic trajectory of a nation for the better.” He added that the reforms are “delivering results” and have “moved us from a position of vulnerability towards one of growing strength.” The CBN Governor also mentioned that the country recorded a balance of payments surplus of $6.83 billion in 2024, supported by rising exports and capital inflows. He said the recapitalisation efforts in the banking sector are gaining momentum, with the goal of enhancing banks’ ability to fund large-scale projects and drive economic activities. Chairman of the Senate Committee on Finance, Senator Sani Musa, praised the economic team of the administration, saying “the economic team of this administration is doing very well on the fiscal aspect of our economy, so that poverty will be reduced.” Musa added that the government has done “all the needful” in terms of activities to make the tax reform bills workable. The Nigerian delegation, led by Edun, had a series of meetings with fund managers, global financial leaders, and multilateral institutions investors, as well as development partners, to cement existing relationships and create new partnerships. The government aims to set the nation on an ambitious trajectory of becoming a $1 trillion economy by 2030.

CBN UNDER CARDOSO AND $6.83 BILLION BALANCE OF PAYMENTS SURPLUS IN 2024 THAT SIGNALS ECONOMIC RESURGENCE

By Ibrahim Modibbo Since his appointment as the Governor of the Central Bank of Nigeria, in October 5, 2023, Olayemi Cardoso has continue to bring on board wide-range of macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy, that were aimed at putting the country back to its economic footing, as a strong economy that is second to none in Africa. As part of the ongoing reforms, the Central Bank of Nigeria recently announced a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year, marking a decisive turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022, according to a press statement from Mrs Sidi-Ali, Hakama, the Ag. Director, Corporate Communications of the apex bank. CBN says “the current and capital account recorded a surplus of $17.22 billion in 2024, underpinned by a goods trade surplus of $13.17 billion. Petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion. On the export side, gas exports rose by 48.3% to $8.66 billion, and non-oil exports increased by 24.6% to $7.46 billion.” While “remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora. Official development assistance also rose by 6.2% to $3.37 billion,” the statement added.Nigeria recorded a net acquisition of financial assets totalling $12.12 billion. Portfolio Investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability. Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains. The country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, bolstering its external buffer.Notably, net errors and omissions narrowed significantly by 79.5% to negative $5.10 billion in 2024, down from $24.90 billion in 2023, reflecting substantial improvements in data availability and capture. This represents a major advance in data accuracy, transparency, and overall reporting integrity. The 2024 BOP surplus highlights the effectiveness of Nigeria’s ongoing reform agenda. The liberalisation and unification of the foreign exchange market, a disciplined monetary policy approach to managing inflation and stabilising the naira, and coordinated fiscal and monetary measures have all contributed to enhanced competitiveness and investor sentiment.“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability,” said the Governor of the Central Bank of Nigeria. “This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” the statement further noted. Other notable indicators to building strong economy by this policy include but not limited to a stronger trade performance, particularly in the current and capital accounts, with a surplus of $17.22 billion in 2024, has contributed to the balance of payments surplus. A goods trade surplus of $13.17 billion that will further strengthens the positive trend. The decline in petroleum and non-oil imports also contributes to a more favorable trade balance.It will noteworthy to note that the CBN’s reforms have increased investor confidence, leading to higher foreign portfolio investment inflows. Portfolio investment inflows more than doubled in 2024, reaching $13.35 billion. This influx of capital indicates a stronger belief in the stability and growth prospects of the Nigerian economy.The apex bank’s disciplined monetary policy and FX market reforms on the other hand are aimed at managing inflation and stabilizing the Naira, has contributed to a more stable financial system.The liberalization and unification of the foreign exchange market have led to greater transparency and reduced distortions in the market. The implementation of an Electronic Foreign Exchange Matching System (EFEMS) further enhances transparency and efficiency in the FX market.The reforms, including the unification of the exchange rate, have improved Nigeria’s competitiveness and attracted more foreign investment. Testament to this is the clearing of a $7 billion forex backlog which has also boosted the country’s image with foreign investors. Also, the significant improvements in data availability and capture have led to a marked reduction in net errors and omissions in the balance of payments data. This enhanced data integrity provides a more accurate picture of the country’s economic performance and builds trust with stakeholders.In conclusion, the combination of strong trade performance, renewed investor confidence, disciplined monetary policy, and improved data integrity, all facilitated by the CBN’s wide-ranging reforms, are key indicators of Nigeria’s economic resurgence. These developments demonstrate the positive impact of the reforms on the nation’s external finances and overall economic stability. Dr Moddibo, a public analyst, wrote in from Abuja

X-RAYING CARDOSO’S IMPACTFUL GAINS AT CBN

By Okanga Agila In the not-so-distant past, Nigeria’s economy was a fragile patient, clinging to life support. The symptoms were all too familiar: hunger, deprivation, and a crippling sense of hopelessness. But then, something changed. A new leadership emerged with a bold vision for a prosperous Nigeria. President Bola Ahmed Tinubu’s administration was determined to break the cycle of economic instability, and they started by making some tough decisions. One of those decisions was the appointment of Dr. Olayemi Cardoso as the Governor of the Central Bank of Nigeria. Dr. Cardoso was a man on a mission, armed with a deep understanding of the economy and a passion for reform. With Dr. Cardoso at the helm, the Central Bank began to implement a series of innovative policies, designed to stimulate growth, create jobs, and empower Nigerian citizens. It wasn’t easy, of course – there were obstacles to overcome, and tough choices to make. But Dr. Cardoso and his team were undeterred, driven by a shared vision of a brighter future for Nigeria. And then, something remarkable happened. The economy began to stir, like a sleeping giant awakening from a deep slumber. Infrastructure projects sprouted up across the country, creating jobs and opportunities for thousands of Nigerians. The education and healthcare sectors received a much-needed boost, giving citizens access to quality services and a chance to build a better life. Dr. Cardoso’s bold move to tackle Nigeria’s inflation problem began with a deliberate attempt to rectify the negative effects of past monetary policies. By holding down excessive money supply, considered a major driver of inflation, Dr. Cardoso introduced measures that would eventually lead to a decrease in prices of goods and services. The initial impact of these measures was a short-term shock, marked by an increase in interest rates, reduced spending and investment, and a decrease in demand for goods and services. Banks also played their part by mopping up excess liquidity from the system, increasing the Monetary Policy Rate (MPR) by 50 basis points. However, the long-term effects of Dr. Cardoso’s measures have been remarkable. Prices of goods and services, especially food items, have consistently fallen, leading to an improvement in the standard of living and a rapid decline in poverty and hardship. The impact is clear: inflation has begun to decline. After a rise from 2022 to 2024, the inflation rate dropped to 24.48% in January 2025 from 32.49% in December 2024. Food inflation, which accounts for about 50% of Nigeria’s inflation, dropped from 39.84% to 26.08% year-on-year in January. This decrease led to a sharp drop in food prices. For example, beans went from over N11,000 to N8,000, and garri decreased from over N4,000 to between N2,000 and N1,500. Cardoso introduced the Inflation-Targeting framework, which brought sweeping changes to stabilize prices, reduce currency volatility, and boost economic growth. His policies increased investor confidence, attracted foreign investments, and positively impacted businesses. Dr. Cardoso also achieved Nigeria’s delisting from the FATF Grey List through transparent market stabilization measures. He introduced new guidelines for dormant accounts, suspended processing fees on cash deposits, and implemented the Early Warning Systems to further consolidate these gains. Dr. Cardoso’s expertise and fiscal discipline transformed the forex market. By streamlining operations into a single framework, he brought stability, increased liquidity, and reduced market distortions. To promote economic management and coordination, Dr. Cardoso cleared 57 backlogged forex requests, reduced volatility, and increased external reserves. He also strengthened monetary-fiscal coordination through the Fiscal and Monetary Policy Coordination Framework (FMPCF) and the Financial Services Regulation Coordinating Committee (FSRCC). Dr. Cardoso utilized advanced tools like Dynamic Integrated Analytic Modelling (OIAMOND) and the Macro Diagnostic Framework to build a robust fiscal regime. He prioritized staff training and capacity building, enhancing their competence in key areas. His efforts led to the emergence of reliable, efficient, and customer-friendly financial institutions. Dr. Cardoso also regulated the activities of Bureau de Change operators, ensuring they complied with standard procedures and promoted national security and citizens’ well-being. Through effective control and deliberate reforms, he has brought about an outstanding level of customer protection, ensuring compliance with rules and objectivity, thereby limiting Fintech risks, fostering robust customer satisfaction and better engagement with formal financial institutions, going to the extent of enforcing sanctions on violators of unethical conducts to serve as deterrence. The introduction of several key initiatives has transformed Nigeria’s financial landscape. The unified tracking system (UCTS) and USSD verification of licensed financial institutions have enhanced transparency and security. Additionally, registering Point-of-Sales operators with the Corporate Affairs Commission (CAC) has helped curb fraudulent activities. Empowerment initiatives, such as the Women Entrepreneur Finance Initiative (We-Fi) Code and the updated National Financial Literacy Framework, have also been launched to support youths and women. These initiatives aim to improve the well-being of Nigerians, revive the agricultural and manufacturing sectors, and promote financial inclusion, business mentorship, and capacity building. This indeed is the joyous story of pains to impactful gains. Dr. Olayemi Cardoso is turning around the story of the nation’s economy and things are getting better for the citizens through the reforms that he has initiated. As the months passed, the evidence of Nigeria’s transformation has become impossible to ignore. The economy is growing, and the people are beginning to feel the benefits. A sense of hope and optimism began to spread as Nigerians from all walks of life started to believe in a brighter future. Today, Nigeria’s economy is unrecognizable from the fragile patient it once was. The country is on the move, driven by a newfound sense of purpose and determination. And at the heart of it all is a leadership that’s committed to creating a better future for all Nigerians. The story of Nigeria’s economic rebirth will be etched in history, with Dr. Olayemi Cardoso’s name forever linked to its triumph. Like a phoenix rising from the ashes, the nation has emerged stronger, more resilient, and poised for greatness. Dr. Cardoso’s leadership has been the catalyst for this transformation, igniting a fire of hope that will continue to burn bright for generations to come.

SERAP URGES CBN GOVERNOR TO REVERSE “EXORBITANT” ATM TRANSACTION FEES

The Socio-Economic Rights and Accountability Project (SERAP) has urged the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to immediately withdraw the recently announced increase in Automated Teller Machine (ATM) transaction fees. In an open letter dated February 15, 2025, SERAP described the increase as “patently unlawful, unfair, unreasonable, and unjust,” and stated that it would “hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country.” The organization’s deputy director, Kolawole Oluwadare, said, “The increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public. The increase only benefits the CBN and commercial banks at the expense of poor Nigerians.” SERAP argued that the increase in ATM transaction fees is inconsistent with the Nigerian Constitution, the CBN Act, and the country’s international human rights obligations. The organization also stated that the CBN has clear responsibilities under the United Nations Guiding Principles on Business and Human Rights to undertake human rights due diligence and to avoid contributing to human rights violations. The CBN had announced that ATM withdrawals made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn, while ATM withdrawals at shopping centers, airports, or standalone cash points will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal. SERAP urged the CBN governor to take immediate action to reverse the increase, stating, “We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”

GOVERNOR CARDOSO’S CBN LEADERSHIP UNDER SCRUTINY OVER HIGH-PAID CONSULTANTS

Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), faces mounting criticism due to allegations of preferential treatment towards two female consultants. These consultants reportedly receive substantial monthly payments, totaling N85 million combined, and wield influence exceeding that of the bank’s deputy governors. Cardoso took the helm at the CBN in September 2023, succeeding Godwin Emefiele. Insiders at the CBN have revealed that the two women, Nkiru Balonwu and Daphne Dafinone, joined the bank shortly after Cardoso’s arrival. Balonwu is the founder of The Africa Soft Power Group, while Dafinone is a chartered accountant and chief operating officer at Crowe Dafinone. A third consultant, Shola Phillips, also works with Cardoso, though her role has generated less controversy. Within the bank, these consultants are now derisively known as “Cardoso women.” CBN directors allege that Cardoso bypassed established hiring procedures when bringing on these consultants. They claim the appointments lack clear definitions of responsibilities, performance targets, or set durations. The directors question the rationale behind hiring Balonwu as a communications consultant, given the CBN’s existing and well-resourced communications department. Dafinone’s role appears similarly undefined, with sources indicating she handles a variety of tasks assigned by Cardoso, including recently overseeing a controversial staff early retirement program, a function typically managed by the human resources department. Sources within the bank suggest that Balonwu and Dafinone have amassed considerable power, surpassing even the deputy governors. “They’re called consultants, but they have permanent offices and no end date to their consultancy,” a director commented. “They’re even more influential than the deputy governors, whose offices are on a lower floor. They bypass the deputy governors and give direct instructions to directors.” Another insider stated, “These women are the ones really running the CBN. Cardoso is just a figurehead.” The consultants’ compensation packages have also drawn sharp criticism. Balonwu’s monthly salary is reportedly N50 million, exceeding the governor’s and the combined salaries of 15 bank directors. Dafinone is said to earn N35 million monthly, surpassing the combined earnings of 10 directors. A staff member expressed frustration, saying, “Why abuse your position to enrich friends and family like this? Even Emefiele didn’t act with such impunity. These women add no value; the governor is simply rewarding them for their connections. The CBN has highly qualified staff; there’s no need for these consultants.” The manner of the consultants’ appointments seems to violate the Public Procurement Act 2007, which mandates open and competitive bidding for government consultancies. The act requires public advertisement of opportunities, clearly defined roles, and transparent evaluation criteria – procedures that were apparently not followed in these cases.