Business
CBN May Lose Control Of The Naira
While the government appeared distracted with the coup in Niger Republic, the naira plunged further in the foreign exchange markets last week, exchanging at a record high of N955 to US$1 on Thursday, and spreading panic through the business community and apprehension among Nigerians. President Bola Tinubu and the Central Bank of Nigeria need to move fast, creatively, and pragmatically to avoid losing control of the currency and the economy.
The omens are bad. Since Tinubu pushed the CBN to merge the exchange rates two months ago, the naira’s southward descent has accelerated. The twin goals of facilitating a “realistic” rate, and eliminating the wide arbitrage gap created between official rates and informal market rates have remained elusive. At the official exchange rate of N767.76/$, the gap, and hence, room for illegal arbitrage, raced from N100/$ towards N200/$.
Absent an economic management team, direction, or cabinet, and no accompanying reforms of the regulatory agencies, all colliding with high inflation and business contraction, the naira is on track to crest the N1,000/$ mark and beyond soon, raising real fears that the CBN could lose control with dire consequences. The IMF added to the anxiety last week, saying existing “loose fiscal and monetary policies” make it difficult for the naira to stabilise.
READ ALSO: Naira Slides Further As Dollar Shortage Hits Banks
Wale Edun, Tinubu’s longtime economic adviser and ministerial nominee, signposted N700/$ as the realistic rate, saying the higher rates are not backed by the fundamentals of the economy. The Economist Intelligence Unit’s forecast of a N1,000/$ rate up till 2027 now appear overly optimistic. Things could get really nasty well before then.
This is not surprising. Supply is constrained by low non-oil export earnings. Demand is artificial, driven by speculators and hoarders, and massive, unchecked money laundering by state and non-state actors. Politicians, public office holders, bandits, kidnappers, and connected contractors, facilitated by lax oversight of the deposit money banks and the bureaux de change, are driving the market with ill-gotten naira, not producers or genuine commercial enterprises.
Tinubu must shift from his unfocussed, ill-planned, and uncoordinated decisions to strategic, well-planned, and comprehensive economic policies. He desperately needs an EMT and more economists and technocrats on board than the motley politicians he has nominated as ministers.
To avoid losing control of the naira and hyperinflation, the CBN should for a few weeks, fund the forex market; next, restrain the BDCs and errant banks from round-tripping and illegal arbitrage. There should be closer collaboration with other regulatory agencies, and the anti-corruption and law enforcement agencies to monitor operators and swiftly and firmly punish infractions and offenders.
READ ALSO: CBN Speaks On Phasing Out Old Naira Notes
An economy battling high unemployment, inflation, production contraction, and dwindling public revenues, needs strong stimulus to achieve recovery. These should target protecting strategic sectors – agricultural production, pharmaceuticals, transportation, and small businesses. Special attention should be paid to SMEs; how to subsidise their power supply, access to low-interest credit, and overthrow crippling taxes and levies.
Hard decisions lie ahead, but should be taken only after rigorous diagnoses and preparation. Shortage of dollars is leaving supply to the market in the hands of black-market operators, thereby effectively subverting the goal of reducing the gap between the official Importers and Exporters window and the parallel market rates. A temporary bolstering of the market to defend the naira for a very short period and funnelled to legitimate businesses is desirable to halt the naira’s downward spiral.
The economy requires very close attention and rigorous planning to avoid a collapse: Tinubu should, going forward, stop taking hasty measures without them.
PUNCH
Business
Fourteen Nigerian Banks Yet To Meet CBN’s Recapitalisation Ahead Of Deadline
No fewer than 14 Nigerian commercial banks are yet to meet the Central Bank of Nigeria’s recapitalisation requirement as the 31st March 2026 deadline inches closer.
This follows CBN Governor, Olayemi Cardoso’s announcement on Tuesday that sixteen Nigerian banks have met their recapitalisation requirement ahead of the apex bank’s March 2026 deadline.
DAILY POST reports that Cardoso disclosed this in a statement after the bank’s 303rd Monetary Policy Committee in Abuja.
According to Cardoso, the development indicates that there is financial soundness in the country’s financial banking system.
READ ALSO:CBN Retains Interest Rate At 27%
MPC had been urged by banks to ensure a successful implementation of the recapitalisation process.
“The committee noted with satisfaction the sustained resilience of the banking system, with most financial soundness indicators remaining within regulatory thresholds,” Cardoso said.
“Acknowledged the substantial progress in the ongoing recapitalisation programme, with 16 banks achieving full compliance with the revised capital requirements.
“The committee thus urged the Bank to ensure a successful implementation and conclusion of the programme, among other domestic developments,” Cardoso said.
READ ALSO:Account For N3tn Or Face Legal Action, SERAP Tells CBN
This means that two additional Nigerian banks have been added to the list of banks which have complied with the apex bank recapitalisation requirement in the last two months.
Recall that Cardoso, in the 302nd MPC meeting, announced that only fourteen banks have met the recapitalisation requirement.
CBN records as of 2024 showed that the country has thirteen commercial banks, five merchant banks and seven financial holdings companies.
Earlier, a report emerged that Access Bank, Zenith Bank, GTBank, Wema Bank, Jaiz Bank, Stanbic IBTC, and others have already met CBN’s recapitalisation requirement.
CBN in March directed commercial banks with international authorisation to increase their capital base to N500 billion, while those with national licences must raise to N200 billion.
Business
CBN Retains Interest Rate At 27%
The Monetary Policy Committee of the Central Bank of Nigeria has voted to retain the benchmark interest rate at 27 per cent.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday following the apex bank’s 303rd MPC meeting in Abuja.
Cardoso stated that the committee also resolved to keep all other monetary policy indicators unchanged.
READ ALSO:CBN Issues Directive Clarifying Holding Companies’ Minimum Capital
He noted that the Cash Reserve Ratio (CRR) remains at 45 per cent for commercial banks and 16 per cent for merchant banks, while the 75 per cent CRR on non-TSA public sector deposits was equally maintained.
Cardoso added that the Liquidity Ratio was retained at 30 per cent, and the Standing Facilities Corridor was adjusted to +50/-450 basis points around the Monetary Policy Rate.
The decision comes as Nigeria records its seventh consecutive month of declining inflation, which eased to 16.05 per cent in September 2025.
Business
CBN Issues Directive Clarifying Holding Companies’ Minimum Capital
The Central Bank of Nigeria, CBN, has issued a definitive directive detailing how financial holding companies should calculate their minimum paid-up capital, following weeks of confusion that delayed the release of some banks’ half-year and nine-month financial statements.
In a circular dated November 14, 2025, the apex bank acknowledged “divergent interpretations” of the term minimum paid-up capital as stated in Section 7.1 of the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies.
To eliminate ambiguity, the CBN ruled that minimum paid-up capital must be computed strictly as the par value of issued shares plus any share premium arising from their issuance.
READ ALSO:CBN Sets POS Maximum Transactions In Fresh Guidelines
“All Financial Holding Companies are required to apply this definition in computing their minimum capital requirement—without exception for subsidiaries,” the circular stated.
The regulator added that the directive takes immediate effect, noting that any previous interpretation that does not align with the new clarification “should be discontinued forthwith.”
The move is expected to calm market anxiety and provide clarity for lenders navigating ongoing regulatory capital requirements.
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