The Central Bank of Nigeria has stated that its ongoing monetary reforms are yielding positive results, pointed out by a stabilizing foreign exchange market, growing external reserves, and moderating inflation rates.
CBN Governor Olayemi Cardoso, represented by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, disclosed these developments at the CBN Fair held at the International Conference Centre in Gombe. The event was organized under the theme, "Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development."
Foreign Reserves Hit 17-Year High
Cardoso revealed that Nigeria's foreign reserves stood above $52.5 billion as of July 17, 2026. This milestone represents a 17-year high for the country and surpasses the annual target set by the apex bank.
The governor also noted that headline inflation experienced a marginal decline, dropping to 15.91% in June 2026 from 15.93% in May 2026. Both core and food inflation measures eased during the same period, driven by disciplined monetary tightening, exchange-rate unification, and improved market transparency.
The local currency has shown increased stability. The spread between the official exchange rate and the Bureau de Change rates has narrowed to less than 2%, supported by consistent inflows and renewed investor participation across various asset classes.
Policy Reforms Drive Market Convergence
Over the past 34 months, the CBN has rolled out several structural reforms to build a foundation for long-term economic growth, job creation, and poverty reduction. These measures include the unification of the foreign exchange market and the recapitalisation of the banking sector.
Other key initiatives introduced include the non-resident Bank Verification Number, the B-Match system for foreign exchange trading, and the Nigeria Payments System Vision 2028. To manage liquidity and curb inflation, the bank also implemented a 75% Cash Reserve Ratio on non-Treasury Single Account public sector deposits.
Furthermore, the CBN partnered with the Financial Markets Dealers Association to launch the Nigerian Overnight Financing Rate. This benchmark for short-term funding transactions aims to establish a transparent, market-based reference rate aligned with international best practices.
Alternative Payments and Public Engagement
The Gombe fair served as a platform for the CBN to interact directly with the public and gather feedback on its policies. Yunusa Buba-Mubi, the Branch Controller of the CBN Gombe Branch, explained that the fair is a regular calendar event designed to bring the bank's programmes closer to citizens.
During the event, Sidi-Ali urged Nigerians to protect the physical currency, reminding the public that spraying, hawking, mutilating, or counterfeiting the naira is strictly prohibited by law. She advised citizens to rely only on verified CBN platforms for official policy information.
