Group Applauds CBN for Strong Financial Governance, Transparency

TADI Commends CBN for Improved Financial Governance, Transparency Under Cardoso

The Transparency Advocacy for Development Initiative (TADI) has lauded the Central Bank of Nigeria (CBN) for improved financial governance, transparency, and policy implementation under its Governor, Mr. Yemi Cardoso.

This was contained in TADI’s independent quarterly assessment report, signed by its Executive Director, Mr. Yomi David, and made available to the Voice of the people (VOP) on Monday in Abuja.

The report evaluated the CBN’s performance based on financial results, transparency, policy coherence, and institutional accountability, using public records and media reports. It revealed steady improvements in governance, accountability, and policy coordination, though challenges remain in tackling inflation and exchange rate volatility.

According to the report, the apex bank moved from a ₦1.3 trillion deficit in 2023 to a ₦165 billion surplus in 2024, driven by stronger income generation—including foreign exchange revenues—and improved cost control. Nigeria’s external reserves also grew from $36.6 billion in 2023 to $38.8 billion in 2024, with further increases projected for 2025.

The report highlighted key reforms, including the unification of the foreign exchange window under a “willing buyer, willing seller” model, clearance of verified FX backlog, and tightened monetary policy through rate hikes and liquidity management.

David noted that while inflation remains high, it is beginning to trend downward. He also pointed to improvements in transparency, with the CBN publishing its financial statements in line with IFRS and rolling out a 10-point reform agenda to enhance governance and exit quasi-fiscal roles.

According to the performance ratings, the CBN scored 6.5 on effectiveness—reflecting progress in foreign exchange and reserves management but continued inflationary pressures—while transparency and governance scored 7.5, owing to improved reporting and institutional reforms.

“The CBN under this administration demonstrates moderate to strong consistency, particularly in policy direction, transparency, and financial discipline. However, inflation control and FX volatility continue to challenge its effectiveness,” David said.