The apex bank says stronger inflows, investor confidence and reforms are supporting reserves, the naira and easing inflation
The Central Bank of Nigeria has reported a strong rise in CBN foreign reserves to above $52.5 billion in July 2026, describing the level as a 17-year high and above its annual target, as the apex bank pointed to stronger inflows, investor confidence and ongoing economic reforms.
Also read: CBN reports positive $52.5bn reserve milestone
The disclosure was made on Thursday, August 20, 2026, in Lokoja, Kogi State, by Makama Sidi Alli, Acting Director of the CBN’s Corporate Communications and Investors Relations Department, during a stakeholder engagement on alternative payment channels and financial inclusion.
Alli, who was represented by the CBN Branch Controller in Lokoja, Zubairu Abdulrahman Salihu, said the improvement in the country’s external reserves was supported by sustained inflows and increased participation across financial asset classes.
“The naira continues to strengthen, with the spread between official and Bureau de Change rates now narrowing by two per cent. Nigeria’s foreign reserves remain above US$52.5 billion as of July 2026, marking a 17-year high and surpassing the CBN’s yearly target,” she said.
The reported reserve position represents a significant strengthening of Nigeria’s external buffers.
The CBN says external reserves are managed primarily to preserve value, provide liquidity for official transactions and maintain confidence in the country’s currency.
The latest reserve development comes alongside signs of moderation in domestic price pressures.
According to the National Bureau of Statistics, the July 2026 Consumer Price Index report was released on August 17, with the official monthly inflation data available through the bureau’s statistics portal.
Alli said headline inflation had declined from 15.91 per cent in June to 15.43 per cent in July, while core and food inflation also eased.
She attributed the improvement to monetary policy measures, foreign exchange reforms and greater transparency in the market.
The CBN’s monetary policy stance has remained relatively tight. At its July 20 and 21 meeting, the Monetary Policy Committee retained the Monetary Policy Rate at 26.5 per cent and kept the cash reserve requirement for deposit money banks at 45 per cent.
The CRR for non-Treasury Single Account public sector deposits remained at 75 per cent.
Against that backdrop, the apex bank has continued to emphasise reforms aimed at strengthening the financial system and improving confidence in the foreign exchange market.
Alli credited CBN Governor Olayemi Cardoso’s administration with measures including greater unification and transparency in the foreign exchange market, banking-sector recapitalisation, the introduction of a non-resident Bank Verification Number and the B-MATCH system for foreign exchange trading.
She also highlighted the Nigeria Payments System Vision 2028 and the 75 per cent cash reserve requirement on non-TSA public sector deposits as part of measures intended to improve liquidity management and reduce inflationary risks.
The stakeholder meeting in Lokoja was framed around the broader challenge of extending formal financial services to people and businesses that remain underserved.
Salihu said technology had rapidly transformed financial services and made alternative payment channels increasingly important to financial inclusion and economic participation.
He identified agent banking, digital payments and other technology-enabled services as important tools for expanding access to payments, savings, credit and insurance, particularly among farmers, traders, small businesses and people operating in the informal economy.
Kogi State Governor Usman Ododo also welcomed the emphasis on financial inclusion, arguing that access to affordable and secure financial services should extend to citizens regardless of their location, income, occupation or social status.
“Alternative channels such as agent banking, mobile money, POS services, USSD, digital wallets, QR-code payments and electronic banking provide important opportunities to reach underserved and rural communities,” Ododo said.
He noted that farmers needed reliable channels to receive payments, save and access credit, while traders could benefit from systems that reduce the risks associated with carrying cash.
The governor also stressed the importance of digital financial services for young people and accessible financial products for women entrepreneurs, particularly as more Nigerians seek to participate in the digital economy.
For the CBN, the combination of rising reserves, a narrower exchange-rate spread and easing inflation provides an encouraging backdrop for its reform programme.
However, the gains will ultimately be measured by how effectively improved macroeconomic conditions translate into lower pressures on households and greater opportunities for businesses.
The central bank’s own statistics platform provides regular data on external reserves, exchange rates, monetary indicators and other economic variables, reflecting the institution’s broader effort to improve access to financial and economic information.
Also read: CBN faces liquidity surge as money supply hits N133.25tn
As Nigeria moves into the second half of 2026, sustaining the reserve build-up while maintaining exchange-rate stability and containing inflation will remain an important test of the CBN’s economic strategy.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
