Nigeria’s external reserves hit a 17-year high as the Central Bank says foreign exchange reforms, moderating inflation and improved investor confidence are strengthening economic stability

The Central Bank of Nigeria on Tuesday announced a CBN $52.5bn Reserve Milestone, revealing that Nigeria’s external reserves had climbed above $52.5 billion, the highest level recorded in 17 years, as Governor Olayemi Cardoso said ongoing monetary reforms were beginning to deliver encouraging results.

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The announcement was made in Gombe, Nigeria, during the 2026 CBN Fair at the International Conference Centre, where the apex bank highlighted improving foreign exchange stability, moderating inflation and renewed investor confidence as signs of a gradually strengthening economy.

Representing Governor Cardoso, the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, said the reserve position exceeded the bank’s annual target, reflecting sustained foreign capital inflows and growing confidence among domestic and international investors.

According to the CBN, Nigeria’s external reserves stood above $52.5 billion as of July 17, 2026, marking the country’s strongest reserve position since 2009 and reinforcing the bank’s efforts to stabilise the macroeconomic environment.

Cardoso described the achievement as an important milestone that underscored the impact of reforms introduced over the past 34 months.

“This is supported by sustained inflows and renewed investor confidence and participation across asset classes in Nigeria,” Cardoso said.

Beyond the record reserve level, the governor pointed to signs that inflationary pressures were gradually easing. Headline inflation declined marginally from 15.93 per cent in May 2026 to 15.91 per cent in June, while both food and core inflation also moderated during the same period.

Cardoso attributed the improvements to disciplined monetary tightening, greater transparency in the foreign exchange market and the unification of exchange rates, policies that have dominated the CBN’s reform agenda since 2023.

He also noted that the naira had become more stable in recent months, with the spread between the official foreign exchange market and Bureau de Change rates narrowing to below two per cent, a development widely viewed as an indicator of improved market efficiency.

“The naira continues to strengthen, with the spread between official and Bureau de Change rates now narrowing to below two per cent,” Cardoso said.

The governor said the reforms were designed not only to restore confidence in Nigeria’s financial markets but also to create conditions for sustainable economic growth, employment generation and poverty reduction.

Among the measures highlighted were the recapitalisation of commercial banks, the introduction of the non-resident Bank Verification Number, the launch of the B-Match foreign exchange trading platform, implementation of the Nigeria Payments System Vision 2028, tighter liquidity management through the Cash Reserve Ratio on eligible public sector deposits, and the introduction of the Nigerian Overnight Financing Rate benchmark.

The CBN believes the combined effect of these initiatives is strengthening monetary policy transmission while aligning Nigeria’s financial system more closely with international standards.

A notable feature of the event was the bank’s continued emphasis on financial inclusion. Speaking on the theme, “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development,” Cardoso said expanding digital payment systems remained central to broadening access to financial services and supporting economic activity across the country.

The governor described the annual CBN Fair as an important platform for direct engagement between the bank and the public, allowing citizens, businesses and other stakeholders to seek clarification on monetary policies while providing valuable feedback.

Sidi-Ali used the occasion to renew the bank’s campaign against the abuse of the national currency, urging Nigerians to obtain information only from verified CBN communication channels and to refrain from spraying, mutilating, hawking or counterfeiting the naira.

Earlier, the Branch Controller of the CBN’s Gombe office, Yunusa Buba-Mubi, encouraged participants to engage actively throughout the event, describing public education as a critical component of the bank’s strategy to deepen understanding of its policies and strengthen trust in Nigeria’s financial system.

The announcement comes after nearly three years of extensive monetary reforms under Governor Cardoso, whose tenure has been characterised by efforts to rebuild investor confidence following years of foreign exchange distortions, multiple exchange rates and declining capital inflows.

While economists have acknowledged progress in restoring market confidence, many also note that sustaining reserve growth, easing inflation further and improving economic productivity will remain crucial to translating macroeconomic gains into broader benefits for businesses and households.

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For now, the CBN $52.5bn Reserve Milestone represents one of the clearest indicators yet that the central bank’s reform programme is gaining traction, even as policymakers continue to balance inflation control with the need to support long-term economic growth.