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The Central Bank of Nigeria (CBN) says its ongoing monetary and foreign exchange reforms are yielding measurable results, with the gap between the official naira exchange rate and Bureau de Change (BDC) market falling below 2%, while the country’s external reserves have risen above $52.5 billion their highest level in 17 years.
The development was disclosed by CBN Governor Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, during the CBN Fair in Gombe, where the apex bank highlighted recent gains in foreign exchange stability, reserve accumulation and inflation management.
Exchange Rate Gap Shrinks
According to the apex bank, the spread between the official foreign exchange market and Bureau de Change rates has reduced to below two per cent, a level the CBN attributes to reforms introduced over the past three years.
Cardoso said disciplined monetary tightening, the unification of Nigeria’s foreign exchange market and improved market transparency have helped reduce opportunities for currency arbitrage while boosting confidence in the naira.
The narrowing gap is seen as a sign of improving price discovery in the foreign exchange market and reflects the CBN’s broader efforts to stabilise the country’s currency.
External Reserves Reach 17-Year High
The CBN also announced that Nigeria’s external reserves exceeded $52.5 billion as of July 17, 2026, surpassing the bank’s annual target and marking the country’s strongest reserve position in nearly two decades.
According to the bank, the increase has been driven by sustained foreign exchange inflows and renewed investor confidence following recent macroeconomic reforms.
A stronger reserve position provides the central bank with greater capacity to meet external obligations, support exchange rate stability and strengthen the country’s resilience against external economic shocks.
Reforms Credited for Improved Stability
The CBN linked the recent progress to a series of policy initiatives implemented over the last 34 months to strengthen Nigeria’s financial system and promote sustainable economic growth.
Among the reforms highlighted were the unification of the foreign exchange market, the ongoing banking sector recapitalisation programme, the introduction of the non-resident Bank Verification Number (BVN), deployment of the B-Match foreign exchange trading platform, and the rollout of the Nigeria Payments System Vision 2028.
The apex bank also noted that it had partnered with the Financial Markets Dealers Association (FMDA) to introduce the Nigerian Overnight Financing Rate (NOFR), a market-based benchmark designed to improve transparency in short-term funding transactions and align Nigeria’s money market with international standards.
Signs of Inflation Moderation
In addition to foreign exchange improvements, the CBN pointed to easing inflation as another indication that its policy measures are beginning to produce positive outcomes.
The bank said recent monetary tightening and liquidity management initiatives have contributed to improved macroeconomic conditions, reinforcing its objective of restoring price stability while creating an environment that supports investment and economic expansion.
Naira Posts Fresh Gains
The central bank further noted that the naira continued its recent appreciation, closing at ₦1,362 per U.S. dollar during Tuesday’s trading, compared with ₦1,365 per dollar recorded a day earlier.
The movement reflects the CBN’s efforts to improve liquidity and confidence in the official foreign exchange market while reducing volatility across currency trading platforms.
Market Confidence Strengthens
Analysts say the combination of stronger foreign reserves, a narrowing exchange rate gap and ongoing financial sector reforms could enhance investor sentiment toward Nigeria’s economy.
The CBN maintains that sustaining these gains will require continued policy discipline, stronger market transparency and reforms aimed at supporting private sector growth, job creation and long-term macroeconomic stability.
As Nigeria continues to pursue exchange rate reforms and financial sector modernisation, the latest figures suggest the country is making progress toward restoring confidence in its foreign exchange market while strengthening its external financial buffers.
