The Central Bank of Nigeria (CBN) has attributed the country's expanding external buffer to a deeper shift into the formal financial system, stronger remittance flows, and rising investment. This development has led to an accumulation of foreign reserves, which stood at $55.25 billion as of September 18, 2026, the highest level in 18 years.
According to CBN Director, Stakeholder Engagement and Institutional Relations Department, Mrs. Hakama Sidi-Ali, the stronger external reserves position is linked to measures designed to improve foreign exchange inflows and move more transactions into formal channels. The development reflects the impact of reforms that encouraged remittances, investments, and wider participation in the formal financial system.
The CBN had in recent months highlighted the recovery in formal remittances as an important component for rebuilding external buffers. The improvement in reserves has also coincided with receding FX pressures and stronger external-sector fundamentals. This is a positive development for the Nigerian economy, which has faced several challenges in recent years.
Sidi-Ali also mentioned that the unification of the FX market has strengthened stability, improved investor confidence, and reduced distortions. Other reforms, including the banking sector recapitalisation and the Payments System Vision 2028 aimed at deepening digital and cross-border payments, have also contributed to the stronger external position.
The CBN director stated that the stronger external position forms part of the foundation for a more resilient economy. According to her, "Resilient trade thrives in an environment of macroeconomic stability." This stability is crucial for businesses to plan and invest in the economy.
The CBN has also reaffirmed its commitment to price stability, banking-sector resilience, and strengthening the wider financial system. The apex bank has cut the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent and adjusted the Standing Facilities Corridor to +50/-300 basis points around the MPR to support productive activities while retaining the focus on bringing inflation down towards single digits.
However, businesses, particularly smaller enterprises, are yet to see the impact of improved macroeconomic indicators on credit accessibility. President of Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu, has called for policies that reduce the financing and operating burden on enterprises, underscoring the monetary transmission challenge.
Key points
- The Central Bank of Nigeria attributes the country's expanding external buffer to stronger remittance flows and rising investment.
- Nigeria's external reserves have hit $55.25 billion, the highest level in 18 years.
- The CBN has reaffirmed its commitment to price stability, banking-sector resilience, and strengthening the wider financial system.
