The Central Bank of Nigeria (CBN) says the banking sector has strengthened following the completion of its sector-wide recapitalisation programme….
The Central Bank of Nigeria (CBN) says the banking sector has strengthened following the completion of its sector-wide recapitalisation programme.
The Monetary Policy Committee (MPC), in its latest communique, said banks now have capital buffers capable of supporting long-term project financing across critical sectors of the economy.
The committee said preserving the gains from the recapitalisation exercise would require stronger coordination between fiscal and monetary authorities.
As part of that effort, the CBN disclosed that it had formally signed a Memorandum of Understanding (MoU) on fiscal-monetary coordination with the Federal Ministry of Finance.
According to the MPC, the agreement provides a structured framework for aligning public spending with monetary policy objectives in order to sustain lower inflation.
The committee, however, warned that several factors could put upward pressure on inflation in the coming months.
It identified geopolitical tensions in the Middle East, elevated energy costs and potential election-related spending as key upside risks.
Despite these risks, the MPC said improved harvest yields and stability in the foreign exchange market were expected to support a continued downward trend in inflation through the end of 2026.
The next meeting of the Monetary Policy Committee is scheduled for November 23 and 24, 2026.
