Nigeria’s financial system went through notable structural changes in the first three months of 2026, as the Central Bank of Nigeria launched reforms and policies centred on bank capital, cash handling, foreign exchange, fraud controls, and interest rates, among others.
These steps helped marginally reduce the headline inflation rate from 15.5% at the end of 2025 to 15.06% by February 2026.
External reserves also moved higher, while the gap between official and parallel exchange rates reduced to a good point.
Here is a look at ten of the most important moves, based on official announcements and reports from that period.
1. Banking Recapitalisation: 32 Banks Meet New Capital Rules Before Deadline
On March 27, 2026, CBN Governor Olayemi Cardoso said 32 banks had already met the revised minimum capital requirements set in March 2024. The deadline is March 31, 2026.
International commercial banks were required to raise ₦500 billion, national commercial banks ₦200 billion, regional banks ₦50 billion, and non-interest banks between ₦10 billion and ₦20 billion.
Banks that met the targets included Access Bank Plc, Zenith Bank Plc, First HoldCo Plc (First Bank), Guaranty Trust Holding Company (GTCO), United Bank for Africa Plc, Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings, Wema Bank Plc, and Ecobank Nigeria.
Others were Sterling Financial Holdings, PremiumTrust Bank, Standard Chartered Bank Nigeria, Citibank Nigeria, Globus Bank, Providus Bank (with its merger partner), Jaiz Bank, Lotus Bank, and TAJ Bank.
Also on the list were The Alternative Bank, Parallax Bank, Signature Bank, SunTrust Bank Nigeria, Alpha Morgan Bank, Nova Bank, Tatum Bank, as well as merchant banks such as FSDH Merchant Bank, Greenwich Merchant Bank, Rand Merchant Bank Nigeria, Quest Merchant Bank and Coronation Merchant Bank.
Together, they raised over ₦4.6 trillion in new capital, with a significant share coming from foreign investors.
The CBN said this strengthened the banking system and improved its capacity to support larger investments. The exercise also came with tighter rules on insider lending and non-performing loans.
2. New Cash Withdrawal Policies Took Effect from January 1
A circular issued in late 2025 changed how Nigerians handle physical cash. From the start of 2026, limits and extra charges on cash deposits into bank accounts were removed.
However, weekly withdrawal limits were introduced, ₦500,000 for individuals and ₦5 million for companies, across channels such as branches, ATMs and POS.
Withdrawals above these limits attract charges of 3% for individuals and 5% for corporates. Daily ATM withdrawals remain capped at ₦100,000 per customer.
The policy aims to reduce the risks and cost of handling large cash volumes while encouraging electronic payments. Banks and customers have since adjusted, with reports indicating increased digital transaction volumes in the first quarter.
3. Bureau de Change Operators Return to Official FX Market
On February 10, 2026, the CBN issued a circular allowing licensed Bureau de Change operators to resume purchasing foreign exchange from the Nigerian Foreign Exchange Market.
They had been excluded since 2021. Under the new arrangement, each BDC can access up to $150,000 weekly through authorised dealer banks at market rates, subject to strict reporting requirements.
The move is intended to improve retail access to foreign currency, ease pressure on the parallel market and support small businesses and individuals. Early signs showed a narrowing gap between official and street rates following the policy.
4. Addendum to BVN and Watch-List Rules Issued
A circular dated March 12, 2026, updated the Bank Verification Number framework. Banks must now place any BVN linked to suspected fraud on a temporary 24-hour watch-list. During this period, the account holder is notified and allowed to respond.
The addendum also sets 18 as the minimum age for BVN enrolment and permits only one lifetime change of the phone number linked to a BVN.
These changes, which take full effect from May 2026, are aimed at strengthening fraud detection while protecting legitimate users.
The CBN said improved real-time monitoring would help reduce losses from suspicious transactions.
5. Guidelines on Automated Anti-Money Laundering Systems
In early March, the CBN introduced minimum technology standards for detecting money laundering and terrorism financing. Deposit money banks have 18 months to comply, while other financial institutions have 24 months.
The guidelines require real-time screening, risk scoring and direct integration with watch-lists. Officials say the move shifts compliance from manual checks to automated systems, strengthening oversight over time.
6. Short-Term Relief on Expired NAFDAC Licences for Imports
At the end of January, the CBN allowed importers a two-month window to use NAFDAC product licences that expired at the end of 2025 when processing Form M on the single window platform.
The relief, which lasted until February 28, covered items such as medicines and packaged foods. It helped prevent supply disruptions while regulatory records were updated.
The measure was temporary and targeted, reflecting the CBN’s readiness to ease pressure on supply chains when necessary.
7. Updated Penalties for Dishonoured Cheques
A February circular strengthened sanctions on customers and banks involved in issuing or clearing dishonoured cheques. Administrative fines were increased, and repeat offenders risk restrictions on issuing new cheques.
The revision is aimed at improving trust in the cheque system while encouraging a faster shift to electronic payments. Clearing houses have since tightened monitoring of return rates.
8. MPC Cuts Monetary Policy Rate
The Monetary Policy Committee held its 304th meeting on February 23 and 24, 2026, and reduced the Monetary Policy Rate by 50 basis points to 26.5%.
The cash reserve ratio remained at 45% for deposit money banks and 16% for merchant banks, with 75% on non-TSA public sector funds.
The policy corridor was left unchanged. Governor Cardoso said the modest rate cut reflected easing inflation while maintaining a cautious stance. Markets reacted calmly, with some easing in fixed-income yields.
9. Diaspora Remittances: Naira-Only Payout Policy
In March 2026, the CBN directed all International Money Transfer Operators (IMTOs) to pay out remittances solely in naira.
Under the policy, recipients no longer receive foreign currency over the counter. Instead, IMTOs are required to settle payments through naira accounts with Nigerian banks.
The move is designed to channel foreign exchange inflows into the official market, improve liquidity and support exchange rate stability without drawing down external reserves.
10. CBN Reaffirms Oversight of Union Bank
Towards the end of March, following a court ruling on ownership matters, the CBN issued a statement reaffirming its supervisory role over Union Bank.
The regulator confirmed the bank had met recapitalisation requirements and remained fully operational. The clarification helped calm depositors and prevent wider concerns across the banking sector.
These ten policies worked together through the first quarter. Stronger bank capital, tighter controls on cash and fraud, improved FX access for retail users and a modest easing of interest rates all pointed in the same direction, focused on a more stable and modern financial system.
Inflation eased slightly, reserves improved and confidence in the naira strengthened in some areas. The key question now is whether these measures will translate into increased lending to businesses and sustained economic growth through the rest of 2026.
For the CBN, the first quarter was focused on building resilience first, then supporting expansion.
