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CBN Pins Economic Stability on Oil, Solid Minerals Reforms

The Central Bank of Nigeria (CBN) has urged relevant authorities to accelerate reforms in the oil and solid minerals sectors, saying sustained investment and policy implementation are critical to strengthening macroeconomic stability amid rising global uncertainties.

The call followed the conclusion of the 306th meeting of the Monetary Policy Committee (MPC) in Abuja on Tuesday, where members said deepening reforms in the extractive sector would diversify government revenue, boost economic resilience and cushion the country against external shocks.

Addressing journalists after the meeting, CBN Governor Olayemi Cardoso said the committee acknowledged the Federal Government’s renewed efforts to increase crude oil production and urged relevant agencies to intensify reforms in the solid minerals sector to unlock its vast economic potential.

“The Committee underscored the potential benefits of Executive Order 9. Members further commended Government’s renewed efforts in improving crude oil production and encouraged relevant agencies to strengthen the implementation of reforms to maximise the potential in other sectors, such as solid minerals, to complement Government earnings,” the communiqué stated.

The MPC said the reforms had become even more imperative as renewed hostilities in the Middle East continue to threaten global economic stability through higher energy prices and supply chain disruptions.

According to the committee, Nigeria has remained largely resilient to the external shocks due to reforms already implemented by the fiscal and monetary authorities. However, it stressed that sustaining this resilience would require stronger policy coordination and accelerated structural reforms.

The committee also welcomed the Federal Government’s renewed commitment to closer fiscal and monetary policy coordination, noting that improved collaboration had helped moderate the domestic impact of recent global developments.

Beyond the extractive industries, the MPC highlighted encouraging signs in the economy, pointing to the Purchasing Managers’ Index (PMI), which rose to 50.1 points in June from 49.6 points in May, signalling a return to business expansion.

It further noted that Nigeria’s gross external reserves climbed to $52.52 billion as of July 17, 2026, enough to cover about 11 months of imports, while the banking sector remained resilient following the ongoing recapitalisation exercise.

Although the committee retained the Monetary Policy Rate (MPR) at 26.5 per cent, it stressed that monetary policy alone cannot guarantee long-term economic stability. Instead, it said sustained structural reforms, increased productivity, higher non-oil revenues and economic diversification would be key to achieving durable growth.

The MPC reaffirmed its commitment to preserving price and financial system stability, expressing confidence that continued reforms, rising crude oil production and increased investment in the solid minerals sector would support stronger economic growth and further moderate inflation over the medium term.