Nigeria's foreign exchange reserves reach $52.73 billion, according to Central Bank data

The Central Bank of Nigeria's Governor, Olayemi Cardoso, revealed to the Senate that the country's external reserves had reached $52.73 billion as of July 9, 2026, marking a significant increase from the $48.88 billion recorded in January.

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This growth represents a 7.9 per cent rise in Nigeria's external reserves, which Cardoso attributed to stronger reserve accumulation and a positive economic outlook, as well as restored confidence in the foreign exchange market.

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Cardoso noted that the gross external reserves had increased by 7.9 per cent to $52.73 billion as of July 9, 2026, up from $48.88 billion in January 2026, while the net external reserves saw a 900 per cent surge to over $40 billion, compared to $3.99 billion in 2023.

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The CBN Governor expressed optimism about the nation's economy, forecasting a positive outlook for the second half of 2026, despite ongoing uncertainties, with inflation expected to continue its gradual decline.

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This anticipated decline in inflation is supported by tight monetary conditions, improved policy coordination, greater exchange rate stability, and easing supply-side pressures, according to Cardoso.

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The most notable achievement during the review period, Cardoso said, was the N4.65 trillion mobilised from the Banking Sector Recapitalisation Programme in March this year, which resulted in one of the most successful banking sector capital-raising exercises in Nigeria's history.

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The programme attracted N4.65 trillion in fresh capital, with 72.55 per cent originating from domestic investors and 27.45 per cent from foreign investors, demonstrating strong domestic participation and growing international confidence in Nigeria's economic prospects.

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Cardoso reported that 33 banks had met the revised capital requirements, leading to improved key financial soundness indicators, while efforts were ongoing to resolve the status of non-compliant banks and ensure financial stability and regulatory compliance.

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Inflation had decreased to 15.06 per cent in February 2026, prompting the Monetary Policy Committee to reduce the Monetary Policy Rate from 27 per cent to 26.5 per cent, but it rose again to 15.93 per cent in May due to external shocks.

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Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, commended the CBN for maintaining exchange rate stability, improving transparency in the foreign exchange market, and successfully implementing the banking recapitalisation programme.

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Abiru cautioned that stronger banks must do more to support productive sectors, stating that recapitalisation should not be an end in itself, but rather a means to mobilise savings efficiently and channel affordable credit to key sectors of the economy.

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The Chairman expressed concern over reports of moderation in private sector credit, despite banks raising unprecedented capital, and emphasized that sectors such as agriculture, manufacturing, infrastructure, technology, and small and medium enterprises should benefit from the increased capital base of banks.

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Following the presentation, Senator Abiru announced that the committee would proceed to a closed-door session to engage the CBN Governor and his management team on the issues raised.