The Central Bank of Nigeria (CBN) has assured the public that the benefits of the country’s improving macroeconomic indicators will soon filter down to households and businesses as ongoing fiscal and monetary reforms take full effect.
The CBN Governor, Olayemi Cardoso, gave the assurance on Tuesday at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.
Cardoso, who was represented by the Deputy Governor, Economic Policy Directorate, Philip Ikeazor, acknowledged public concerns that recent improvements in major economic indicators have yet to translate into better living conditions for many Nigerians.
He stated that the monetary authority is working closely with fiscal authorities to ensure that the gains from a stabilized economy yield tangible microeconomic improvements.
“All watchers of the economy have acknowledged the macroeconomic stability we have today,” Ikeazor said. “But the question that remains on everyone’s mind is: when will the common man feel the full benefits? That is on its way because of this close collaboration.”
He added that key fiscal initiatives, such as the National Single Window project, are expected to produce results shortly and complement the measures already implemented by the apex bank.
The CBN official attributed the economic turnaround to unprecedented monetary-fiscal coordination, while praising President Bola Tinubu for allowing the apex bank autonomy to focus on its statutory mandate.
Stability vs. Prosperity
The assurance comes amid continued pressure on domestic budgets due to elevated living costs, financing expenses, and the cumulative impact of economic reforms introduced since 2023.
President Bola Tinubu, represented at the conference by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, noted that indicators of structural stability should not be mistaken for widespread wealth.
“Stability has returned. Credibility is rising. Prosperity is coming,” the President stated. “These improvements matter, but we must not mistake macroeconomic stability for economic prosperity. Stability is the foundation; prosperity is the destination.”
He revealed that the next phase of the government’s reform program will focus on converting this stability into investments, industrial production, jobs, and improved living standards. The banking sector, he added, is expected to play a critical role in financing this real economy.
Cascading Gains to the Micro Level
Earlier in the program, the President and Chairman of Council of the CIBN, Dr. Dele Alabi, emphasized that while significant macro-level milestones have been reached, the next major hurdle is systemic transmission.
“It is imperative for the gains made in terms of macroeconomic fundamentals to be cascaded to the micro level — the households, the individuals, and businesses,” Alabi said. He urged policymakers to shift focus from national balance sheets to household budgets, noting that millions of micro, small, and medium-sized enterprises (MSMEs) continue to struggle with high operating costs and limited access to credit.
Corroborating this view, the Chairman of the Body of Bank CEOs and Group Managing Director of United Bank for Africa (UBA) Plc, Oliver Alawuba, cited positive signposts including the 4.43 percent year-on-year Gross Domestic Product (GDP) growth in Q2 2026, easing inflation, and strengthening external reserves.
However, Alawuba warned against complacency: “These are signposts and mileposts; they are not the final destination.” He urged recapitalized banks to aggressively convert their expanded balance sheets into affordable credit facilities for agriculture, manufacturing, infrastructure, and exports.
**World Bank Calls for Job Creation**
In a keynote address, the World Bank Country Director for Nigeria, Mathew Verghis—represented by the bank’s Senior Private Sector Specialist, Bertine Kamphuis—agreed that Nigeria’s recent reform gains are real, but argued that job creation must become the primary metric of success moving forward.
The global bank noted with concern that domestic credit to Nigeria’s private sector remains low at about 13 percent of GDP, with MSMEs receiving a mere one percent of total allocations despite their critical role in employment generation.
The World Bank concluded that ongoing stability must be utilized immediately as a launching pad to channel capital toward productive, employment-generating enterprises.
