Nigeria experienced a major rebound in investor confidence, with foreign capital inflows reaching $20.98 billion in the first ten months of 2025—the highest in years—according to Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso.
This represents a 70% increase over 2024 and a 428% jump from 2023, reflecting renewed trust in Nigeria’s economic direction and the credibility of ongoing monetary reforms.
FX Market Reforms Deliver Stability
Cardoso highlighted key reforms:
- Unification of FX windows and clearing of multi-billion-dollar backlog
- Deployment of the Electronic Foreign Exchange Management System (EFEMS) for transparency and real-time monitoring
- Reduction of the official-parallel market premium from over 60% to under 2%
He announced a revised FX Manual to widen market participation, tighten documentation standards, and reinforce regulatory consistency.
Strengthened External Position
- Foreign reserves rose to $46.7 billion by mid-November, the highest in nearly seven years, providing over 10 months of import cover.
- Current account surplus increased 85% to $5.28 billion in Q2 2025 from $2.85 billion in Q1, supported by higher non-oil exports and remittances (+12%).
- Reserves were rebuilt organically, not through borrowing.
No Return to Ways & Means Borrowing
Cardoso reaffirmed that the CBN will not finance the federal government’s deficits, emphasizing fiscal discipline and commending complementary reforms like:
- Revenue Optimisation (RevOp) framework
- Establishment of the National Revenue Agency
- Upgrades to the Treasury Single Account (TSA)
Strategic Priorities for 2026
CBN’s agenda includes:
- Strengthening banking supervision and governance
- Delivering durable price stability via enhanced inflation-targeting
- Modernising payments and expanding financial inclusion
- Fostering responsible fintech innovation and digital-asset experimentation
- Enhancing institutional capacity and staff skills
- Deepening collaboration with regulators and international partners
- Ensuring greater shock absorption from oil-price volatility
- Leveraging technology, including AI, to strengthen decision-making
Cardoso stressed that price stability remains the Bank’s bedrock priority, with a focus on forward guidance, market integrity, and sustainable growth.
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