Nigeria's economic recovery signaled by forex stability, $52.5bn reserves: Central Bank

The Central Bank of Nigeria (CBN) announced on Tuesday that recent stability in the foreign exchange market, coupled with increasing foreign reserves and moderating inflation, indicates that its ongoing monetary reforms are yielding positive results. CBN Governor Olayemi Cardoso, represented by Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications, shared these insights at the CBN Fair in Gombe.

Cardoso reported that headline inflation saw a marginal decline from 15.93 percent in May to 15.91 percent in June. Core and food inflation also eased during the same period. He attributed these improvements to disciplined monetary tightening, the unification of exchange rates, and enhanced market transparency. The Nigerian naira has demonstrated greater stability, with the spread between official and Bureau de Change rates narrowing to less than two percent.

Nigeria's foreign reserves have surpassed $52.5 billion as of July 17, 2026, marking a 17-year high and exceeding the CBN's annual target. Cardoso noted that sustained inflows and renewed investor confidence across various asset classes are supporting the naira's strengthening. The CBN has implemented reforms over the past 34 months to foster sustainable economic growth, job creation, and poverty reduction.

Key reforms include unifying and increasing transparency in the foreign exchange market, recapitalizing the banking sector, introducing the non-resident Bank Verification Number, and establishing the B-Match system for foreign exchange trading. The Nigeria Payments System Vision 2028 and a 75 percent Cash Reserve Ratio on non-Treasury Single Account public sector deposits are also part of the strategy to manage liquidity and mitigate inflationary risks. The CBN is also promoting alternative payment channels to deepen financial inclusion and support economic activities.