Nigeria’s foreign exchange market is showing signs of increased stability as the naira continues to strengthen and the gap between the official exchange rate and Bureau de Change (BDC) market falls below two per cent.
The country’s foreign reserves also rose above $52.5 billion as of July 17, 2026, reaching their highest level in about 17 years and exceeding the Central Bank of Nigeria’s annual target.
The development has been linked to stronger foreign exchange inflows, improved investor confidence and increased participation in Nigeria’s financial markets.
The Acting Director of Corporate Communications and Investor Relations at the CBN, Hakama Sidi-Ali, disclosed the figures on Tuesday in Lafia, Nasarawa State, during a financial literacy and public engagement fair organised by the apex bank.
She said the improvements were part of the results of reforms introduced under CBN Governor Olayemi Cardoso over the past 34 months.
According to her, the reforms were designed to create a stronger foundation for economic growth, improve job opportunities and support efforts to reduce poverty.
One of the major changes highlighted was the reform of Nigeria’s foreign exchange market. Sidi-Ali said the move towards a more unified and transparent forex market had helped improve stability and confidence in the naira.
She also pointed to the recapitalisation of Nigerian banks, saying it had strengthened the capacity and resilience of the banking industry.
Other initiatives include the introduction of the non-resident Bank Verification Number (BVN), the B-MATCH foreign exchange trading system and the Nigeria Payments System Vision 2028.
The CBN also introduced a 75 per cent Cash Reserve Ratio on non-Treasury Single Account public-sector deposits as part of efforts to improve liquidity management and reduce inflationary pressures.
Inflation has also shown signs of easing. According to the latest data referenced by the CBN, headline inflation declined from 15.91 per cent in June to 15.43 per cent in July 2026. Core and food inflation also recorded declines during the period.
Sidi-Ali said the figures suggested that monetary policy measures, exchange-rate reforms and greater market transparency were beginning to produce positive results.
The CBN official made the remarks at a fair themed “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development.”
The event focused on encouraging Nigerians to adopt digital and alternative payment systems, including Point-of-Sale terminals, mobile money, QR payments, internet banking and instant payment platforms.
The Branch Controller of the CBN in Lafia, Njideka Nwabukwu, said alternative payment channels had helped bring more Nigerians into the formal financial system.
She encouraged traders and entrepreneurs to adopt digital payments, while urging young Nigerians to use technology to create new opportunities.
Participants, including students, members of the National Youth Service Corps and other residents, reportedly expressed willingness to embrace digital banking to reduce the need for frequent visits to banks.
The CBN also reminded Nigerians to treat the naira with care, warning against spraying, hawking, mutilating or counterfeiting the currency.
With reserves rising, inflation moderating and the forex market becoming more stable, the latest developments could strengthen confidence in Nigeria’s economy if the positive trends are sustained.
