NIGERIA’S net foreign portfolio investments (FPI) rose to $6.3 billion in the first eight months of 2026, while the country’s gross external reserves climbed to $55.6 billion as of September 11, the Central Bank of Nigeria (CBN) has disclosed.
The figures point to a significant improvement in foreign exchange liquidity and investor confidence following reforms implemented by the apex bank over the past three years.
Deputy Governor, Corporate Services, CBN, Dr Muhammad Sani Abdullahi, disclosed the figures in his keynote address at the Finance Correspondents Association of Nigeria (FICAN) and Business Editors conference, in Abuja.
Abdullahi said the improvement in capital inflows and reserves reflected the combined impact of foreign exchange market reforms, tighter liquidity management, monetary policy measures, stronger oil receipts and increased remittance flows.
He disclosed that total foreign exchange flows reached $10.8 billion in July 2026, with $7.3 billion, representing nearly 68 percent, coming from more controllable sources.
According to him, remittances through international money transfer operators reached $950 million in July, while net foreign portfolio investments stood at $6.3 billion between January and August.
The CBN deputy governor cautioned that portfolio inflows could reverse, stressing the need to deepen more stable sources of foreign exchange and investment.
He said gross external reserves had risen to $55.6 billion by September 11, compared with net usable reserves of less than $900 million in the second quarter of 2023.
The development, he noted, represented a major shift from the conditions confronting the economy three years ago, when Nigeria’s foreign exchange market was fragmented and heavily administered.
Abdullahi said the gap between official and parallel-market exchange rates had averaged more than 60 percent in 2022 and exceeded 100 percent at some points. He added that the average gap, which stood at 68.2 percent in January 2022, had fallen to less than two percent.
He stressed that the CBN’s reforms included the consolidation of foreign exchange market windows, removal of restrictions that excluded 43 categories of imports from the official market, settlement of valid outstanding obligations and measures to improve transparency in foreign exchange trading.
The CBN official also linked the improved financial system resilience to the banking sector recapitalisation programme, which was launched in 2024.
He said 33 banks had met the revised minimum capital requirements by the end of the two-year programme, raising a combined N4.65 trillion.
According to him, stronger bank balance sheets would enhance the capacity of lenders to finance infrastructure, industrial expansion, international trade and other productive activities needed to support Nigeria’s ambition of building a $1 trillion economy by 2030.
Abdullahi said the reforms had also coincided with a moderation in inflation, which fell from 34.8 percent in December 2024 to 15.4 percent in July 2026, while real GDP growth reached 4.4 percent in the second quarter.
He, however, warned that stronger capital must be matched by sound governance and effective risk management.
He said banks must strengthen their management of credit, market, liquidity and operational risks, while paying greater attention to cybersecurity, data protection, climate-related risks and third-party dependencies.
‘Capital is, therefore, a starting point. Boards and management must maintain sound controls, recognise risks early, and rely on the strength of viable projects,’ he stated.
He said the CBN would continue to focus on governance, asset quality, liquidity, large exposures, stress testing and macro-prudential surveillance as the banking sector enters the post-recapitalisation era.
The deputy governor also urged banks to translate stronger balance sheets into productive lending and wider access to finance for agriculture, manufacturing, infrastructure, small businesses and households.
He stressed that the ultimate measure of recapitalisation should not only be the amount of capital raised, but the quality of banking services and productive lending that the stronger capital base supports.