Country's cash reserves approach $53 billion mark amid growing success of central bank's overhaul efforts

The Central Bank of Nigeria announced on Tuesday that its ongoing monetary reforms are yielding positive results, as evidenced by the recent stability in the foreign exchange market, rising foreign reserves, and moderating inflation.

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As of July 17, 2026, Nigeria's external reserves had risen to over $52.5bn, exceeding the annual target and reaching their highest level in 17 years, according to the apex bank.

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CBN Governor Olayemi Cardoso, represented by the Acting Director of the Corporate Communications and Investor Relations Department, Mrs Hakama Sidi-Ali, made this disclosure at the CBN Fair held at the International Conference Centre, Gombe.

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Sidi-Ali also issued a statement on Tuesday, which noted that Nigeria's foreign reserves have exceeded the annual target, climbing above $52.5bn as of July 17, 2026, representing a 17-year high.

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According to Cardoso, this milestone is a result of sustained capital inflows, renewed investor confidence, and growing confidence in Nigeria's economic management, supported by sustained inflows and renewed investor confidence across asset classes in Nigeria.

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The governor stated that headline inflation declined marginally from 15.93 per cent in May 2026 to 15.91 per cent in June, while core and food inflation also moderated during the period, driven by disciplined monetary tightening, exchange-rate unification, and improved market transparency.

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The naira has recorded greater stability, with the gap between the official exchange rate and Bureau de Change rates narrowing to below two per cent, according to Cardoso.

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Over the past 34 months, the CBN has implemented reforms aimed at laying the foundation for sustainable economic growth, job creation, and poverty reduction, including the unification and increased transparency of the foreign exchange market.

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Other reforms include the recapitalisation of the banking sector, the introduction of the non-resident Bank Verification Number, the B-Match foreign exchange trading platform, and the Nigeria Payments System Vision 2028.

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Cardoso listed additional reforms, such as the introduction of a 75 per cent Cash Reserve Ratio on non-Treasury Single Account public sector deposits and the Nigerian Overnight Financing Rate benchmark, designed to strengthen liquidity management and improve transparency.

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The CBN governor spoke on the theme of the fair, "Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development," and said the CBN remains committed to promoting alternative payment channels to deepen financial inclusion and support economic activities.

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The fair provided an opportunity for the apex bank to engage directly with citizens, businesses, and other stakeholders, explain its policies, and obtain public feedback, according to Cardoso.

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He urged participants to actively engage in the sessions by asking questions and seeking clarification on the bank's policies and programmes, and to take advantage of the fair to deepen their understanding of the CBN's initiatives.

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The CBN reiterated its warning against the abuse and misuse of the naira, with Sidi-Ali urging Nigerians to obtain information on CBN policies only from the bank's verified platforms and to respect the national currency.

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Sidi-Ali reminded the public that it is prohibited to spray, hawk, mutilate, or counterfeit the naira, and urged citizens to uphold the cleanliness and respect of the currency.

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Earlier, the Branch Controller of the CBN Gombe Branch, Yunusa Buba-Mubi, described the CBN Fair as an annual engagement platform designed to educate the public on the bank's policies and provide stakeholders with opportunities to ask questions and offer feedback.

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Buba-Mubi urged participants to pay attention to the presentations and actively engage in the sensitisation sessions to deepen public understanding of the apex bank's initiatives and their impact on the economy.

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The CBN stated that it would continue implementing policies aimed at maintaining monetary and price stability, strengthening financial markets, rebuilding investor confidence, and promoting sustainable economic growth.