The apex bank says stronger inflows and investor confidence are supporting Nigeria’s foreign exchange stability and rebuilding its external buffers

The Central Bank of Nigeria has highlighted fresh gains in the naira and a surge in foreign reserves above $52.5 billion as evidence of improving stability in the country’s foreign exchange market, with the development discussed at a CBN fair in Lafia, Nasarawa State, on Tuesday, August 18, 2026.

Also read: CBN Reports Stronger $70.54bn FX Inflows in 2025

The apex bank said the naira gains had been accompanied by a narrowing gap between official and Bureau de Change exchange rates to below two per cent, while gross external reserves reached a 17-year high by July 17.

The Acting Director of Corporate Communications and Investor Relations at the CBN, Hakama Sidi-Ali, attributed the improvement to sustained foreign exchange inflows and renewed investor participation across different asset classes.

The reserve position has strengthened considerably in recent months.

CBN Governor Olayemi Cardoso previously disclosed that gross external reserves rose from $50.47 billion at the end of May to $52.52 billion on July 17, with crude oil-related taxes and third-party inflows among the key contributors.

The level was sufficient to cover about 11 months of imports, well above the conventional three-month benchmark.

The latest position also surpassed the CBN’s projected full-year reserve level of about $51.04 billion and represented the highest level in more than 17 years.

Speaking in Lafia, Sidi-Ali said the improvement formed part of the outcome of reforms implemented under Cardoso’s leadership over the past 34 months.

She pointed to the unification and increased transparency of the foreign exchange market, banking sector recapitalisation, the non-resident Bank Verification Number, the B-Match foreign exchange trading system and the Nigeria Payments System Vision 2028.

She also cited the 75 per cent Cash Reserve Ratio on non-Treasury Single Account public sector deposits as part of measures aimed at improving liquidity management and limiting inflationary risks.

“The naira continues to strengthen, with the spread between official and Bureau de Change rates now narrowing to below two per cent,” Sidi-Ali said, according to the CBN’s statement.

She added that the improvement was “supported by sustained inflows and renewed investor confidence and participation across asset classes in Nigeria.”

The foreign exchange improvement has coincided with a moderation in headline inflation. Data from the National Bureau of Statistics showed that inflation eased from 15.91 per cent in June to 15.43 per cent in July 2026.

However, the broader inflation picture remains mixed. Food inflation accelerated sharply on a month-on-month basis in July, highlighting the continued pressure faced by households despite the decline in the headline rate.

Sidi-Ali said the CBN’s monetary and financial reforms were designed not only to stabilise prices and the foreign exchange market but also to support inclusive growth, job creation and poverty reduction.

The comments came during a CBN fair in Lafia themed, “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development”.

The fair was designed to give members of the public greater understanding of the apex bank’s policies while providing an avenue for feedback from businesses, students, National Youth Service Corps members and other residents.

Branch Controller of the CBN in Lafia, Njideka Nwabukwu, said alternative payment systems had become increasingly important to expanding access to formal financial services.

She highlighted the growth of agent banking, Point-of-Sale terminals, mobile money, QR payments, internet banking and instant payment platforms as part of the country’s progress in financial inclusion.

“Today, I therefore urge every participant here to become an ambassador of financial inclusion,” Nwabukwu said.

She encouraged entrepreneurs and traders to adopt digital payment channels, while urging young Nigerians to use technology responsibly to create economic opportunities.

The CBN also used the engagement to remind members of the public about the proper handling of the naira, warning against practices such as spraying, hawking, mutilating or counterfeiting the currency.

For the apex bank, the combination of stronger reserves, a narrower official-to-BDC exchange-rate spread and moderating headline inflation offers an encouraging signal after years of significant foreign exchange pressures.

Yet the continuing rise in food prices means that the improving macroeconomic indicators have not necessarily translated into equivalent relief for every household.

Also read: CBN Orders BDCs to Return Unused Forex Within 24 Hours

The challenge for policymakers will therefore be to sustain the gains in external reserves and currency stability while ensuring that improvements in monetary and financial conditions increasingly reach households and businesses through lower costs, stronger purchasing power and broader economic opportunities.