The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Thursday disclosed that Nigeria’s net foreign reserves have risen to $40 billion presently, compared with about $3 billion it was when he assumed office in 2023.
Equally, he revealed that the country’s gross external reserves have also climbed to about $52 billion, providing approximately 10 months of import cover.
Cardoso, disclosed this in Lagos, same day the CBN issued comprehensive operational guidelines for the implementation of its electronic foreign exchange (FX) purchase platform for Bureau De Change (BDC) operators, introducing a real-time transaction monitoring system, stricter Know-Your-Customer (KYC) requirements and enhanced compliance measures aimed at strengthening transparency, regulatory oversight and efficiency in the retail segment of the Nigerian Foreign Exchange Market (NFEM).
Speaking at the BusinessDay CEO Forum, the CBN Governor also disclosed that diaspora remittances are on course to reach $1 billion monthly by the end of the year, while noting that the FX market has become sufficiently liquid to operate with minimal intervention from the CBN.
He also said the bank recapitalisation and regulatory oversight would remain a continuous exercise to strengthen the resilience of the banking sector.
The CBN governor said the country’s stronger external position underscores the success of the reforms implemented over the past three years, particularly the unification of the FX market and the restoration of investor confidence.
According to him, the apex bank inherited an FX market characterised by multiple exchange rates, opacity and acute shortages, but has since transformed it into a more transparent and market-driven system.
He said: “Anybody that wants to argue about what the impact of these reforms have been, go and look at the results. As of yesterday, we were hovering, I believe, about $52 billion. “When we started, the net reserves figure was in the region of about $3 billion plus. And if you remember, that was a figure that was published at the time by J.P. Morgan and created a lot of panic in the system. More recently, the net reserves figure is in the $40bn range. So, it’s a long and difficult journey.”
Cardoso added that the current reserve position has significantly strengthened Nigeria’s external buffers and improved the country’s attractiveness to foreign investors.
According to him, “Today’s level of reserves is, I believe, about 10 months of import cover. Anybody coming to invest in Nigeria, these are the things they look at in determining whether it is worth taking a position in your currency.
“Doing this consistently is what is giving confidence to not just internal stakeholders, but those who also operate internationally.”
He further noted that another visible outcome of the reforms was the restoration of confidence in Nigeria’s payment system, saying Nigerians can now use their bank cards seamlessly abroad.
“When you travel today, you go with your naira card. It works. It has brought back the way the outside world looks at us. In the past, you go there, the card doesn’t work. Can’t pay for your goods. They look at your naira card. They throw it back at you. Not any longer.”
On the steady build-up of external reserves, Cardoso said the CBN deliberately diversified sources of FX inflows, with diaspora remittances emerging as one of its key priorities.
He added: “When we were building these reserves, there was a lot of cynicism. One of the things we decided to go after was the diaspora remittances. We put together teams. We worked very closely with the banks. We went far and wide. We visited different countries.
“At the time, we gave ourselves a goal that we would double the remittance inflows between the time we started and the end of the year, and we did exactly that. That is still work in progress.
“We are not relenting on that. As at the last time, I believe we were $600 million plus. We are expecting that by the end of the year we will hit about $1 billion a month from diaspora remittances.”
He explained that the improvement was driven by policy reforms that removed bottlenecks to inflows by ensuring easier entry and exit of funds.
Cardoso also dismissed suggestions that the growing reserve stockpile should be deployed aggressively to defend the naira, stressing that reserves are primarily meant to serve as buffers against external shocks rather than for routine market intervention.
The CBN Governor said: “Today, the liquidity of our foreign exchange market is such that it is really and truly allowing us to operate a system wherebuying and selling takes care of itself with minimum interference from the Central Bank.”
He added that the market had moved beyond an era when participants depended almost entirely on the CBN for liquidity, noting that the stronger reserve position gives the apex bank sufficient capacity to intervene only when necessary to cushion the economy against external volatility.
On banking sector reforms, Cardoso said the recapitalisation exercise, which attracted about N4.65 trillion in fresh capital, has significantly strengthened the resilience of the banking industry, stressing that supervisory oversight would continue beyond the capital raise.
“Our oversight on banks does not stop at the fact that they have raised capital. No. It is going to be continuous because we need a strong, resilient banking sector to be able to take us to where we want to go,” he added.
He added that as inflation moderates and interest rates gradually decline, banks would be better positioned to channel more credit to the productive sectors of the economy, particularly small and medium-scale enterprises, while continuing to build the capacity required to manage associated risks.
Cardoso also urged Nigerian businesses to take advantage of the improving macroeconomic environment rather than remain on the sidelines, warning that foreign investors are already positioning themselves to seize emerging opportunities.
According to him, the country has achieved hard-earned macroeconomic stability, creating a stronger foundation for investment and economic growth.
He said: “A lot has happened over the course of the past three years with respect to exchange rate policy, monetary policy and financial system stability. A lot has happened. Now that we have accomplished these things, and now that the outlook is positive.
“We sit in a particular place where we see an enormous amount of interest from outside. They watched very keenly. They’ve seen the road we have traveled and they are getting closer. In some cases, investments are being made. You’ll hear of huge investments being made into our economy as a result of the stability that has been accomplished.”
Cardoso cautioned local investors against relying on what he described as “muscle memory” by assuming the economy would revert to previous conditions.
He said: “I hope that our own leadership in many of these companies and many of the CEOs you have here will recognise that and will not be afraid, and will not hold on to muscle memory, thinking that things are still as they were before, or that they can’t last, because that’s the biggest mistake you make. It shouldn’t be that by the time you wake up to the situation; the horse has bolted.”
He further added: “Where we are now, we’ve achieved that hard-earned stability. With stability comes potential for investment, and with investment comes growth. All our local CEOs should be part and parcel of that train that is moving.”
Meanwhile, the CBN yesterday issued comprehensive operational guidelines for the implementation of its electronic FX purchase platform for BDC operators.
In a circular dated July 15, 2026, signed by the Director of the Trade and Exchange Department, Aderinola Shonekan, the apex bank issued detailed regulatory guidance and operational modalities for licensed BDCs purchasing foreign exchange through authorised dealer banks under the NFEM.
The new framework followed the CBN’s February 10, 2026 circular granting BDCs access to the official FX market through authorised dealer banks and is designed to deepen liquidity while ensuring orderly participation in the retail FX market.
It stated: “All Authorised Dealer Banks and Licensed BDC operators are hereby informed that, further to the Circular dated 10 February 2026 for BDCs to access foreign exchange from the NFEM through Authorised Dealer Banks of their choice, the CBN has issued detailed Regulatory Guidance and Operational Modalities to facilitate seamless implementation of the framework and support sustained liquidity in the retail segment of the foreign exchange market.”
It added that the guidance “announces the implementation of the electronic portal to facilitate the interaction between BDCs and the NFEM” and outlines the eligibility requirements for participating BDCs, purchase request procedures, confirmation and settlement processes, reporting obligations, weekly purchase limits, treatment of unutilised balances, and the compliance responsibilities of both authorised dealer banks and BDC operators.”
The CBN directed all authorised dealer banks and licensed BDCs to familiarise themselves with and strictly comply with the new framework with immediate effect, noting that it is intended to “enhance transparency, efficiency, market liquidity, and orderly participation in the retail segment of the NFEM.”
It warned that any violation of the circular or the accompanying guidance would attract regulatory sanctions.
A key feature of the new framework was the introduction of a centralisedelectronic platform, the FX BDC Purchase Tracker (FXBT), through which all licensed BDCs will be registered and required to submit real-time or same-day data on foreign exchange purchases.
The CBN stated further: “The CBN shall maintain a centralised portal, the FX BDC Purchase Tracker (FXBT) to which all BDCs shall be registered and submit real-time or same-day data on BDC purchases, enabling systemic compliance and oversight.”
The regulator also reaffirmed that every licensed BDC is free to purchase foreign exchange through any authorised dealer bank of its choice.
It added:”No Authorised Dealer Bank shall impose exclusivity arrangements, referral fees, or any condition that restricts a BDC’s freedom to select its preferred counterparty bank.”
Under the new process, BDCs seeking FX must submit purchase requests electronically through the designated FX Purchase Tracker Portal.
“A BDC wishing to purchase foreign exchange shall submit a Purchase Request electronically via the Bank’s designated portal (FX Purchase Tracker Portal) to the chosen Authorised Dealer Bank, ensuring all mandatory fields are adequately completed. BDCs are allowed to make multiple requests weekly, subject to any maximum permissible caps that may be prescribed by the CBN,” the circular stated.
The guidelines further provide that only BDCs with valid and subsisting CBN licences will be eligible to access foreign exchange under the framework. Operators whose licences have been suspended, restricted or are under regulatory sanctions will remain ineligible until such sanctions are lifted.
In addition, the apex bank imposed fresh compliance obligations on authorised dealer banks, directing them to conduct comprehensive Know-Your-Customer (KYC) and Customer Due Diligence (CDD) checks before processing any transaction for BDCs.
Banks are required to obtain and maintain key corporate documents, including valid operating licences, Corporate Affairs Commission registration documents, Tax Identification Numbers, beneficial ownership details and the identities of principal officers. They are also expected to carry out enhanced due diligence for higher-risk BDCs and update customer records at least annually or whenever there are material changes.
The circular reiterates that the new measures form part of its broader efforts to digitise foreign exchange transactions, strengthen regulatory oversight, improve market surveillance and reinforce confidence in Nigeria’s foreign exchange market.
It expressed confidence that the framework would enhance operational efficiency, improve liquidity in the retail FX market and support greater transparency across BDC transactions. The regulator, however, warned that any breach of the new guidelines would attract appropriate regulatory sanctions.
Nume Ekeghe
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