Nigeria has witnessed a remarkable boost in confidence from external investors, with foreign capital inflows totaling $20.98 billion during the first ten months of 2025.

This figure, which marks the highest level in several years, was revealed by the Central Bank Governor, Mr. Olayemi Cardoso.

At the 2025 Annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria in Lagos, Governor Cardoso asserted that these inflows indicate a restored trust in Nigeria’s economic trajectory and the effectiveness of current monetary reforms. The amount reflects a 70 percent increase compared to the total for 2024 and a 428 percent rise from the 2023 total.

Cardoso pointed out the "noticeable changes" in the foreign exchange market. He remarked that the CBN has successfully maintained the unification of FX windows while fully addressing the multi-billion-dollar backlog that had previously eroded confidence.

He indicated that the Nigerian Foreign Exchange Code and the introduction of the Electronic Foreign Exchange Management System have brought about transparency, obligatory order submission, real-time monitoring, and improved price discovery.

According to Governor Cardoso, these reforms “have reinstated discipline to the market,” significantly narrowing the gap between the official and parallel markets to below 2 percent, a dramatic decrease from the over 60 percent noted a year ago.

The Governor mentioned that the Bank will soon introduce an updated FX Manual intended to broaden market participation, enhance documentation standards, and solidify regulatory consistency to maintain stability.

Cardoso noted a noteworthy enhancement in the nation's external buffers. Foreign reserves climbed to $46.7 billion by mid-November, marking the highest level in nearly seven years, providing “over 10 months of coverage for imports.”

He emphasized that reserves are being rebuilt “organically—not through borrowing—but by improving market operations, boosting non-oil exports, and securing strong capital inflows.”

Nigeria’s current account balance also demonstrated strength, increasing by 85 percent to $5.28 billion in Q2 2025 from $2.85 billion in Q1. This growth was supported by a rise in non-oil export revenues and better remittance inflows, which increased by approximately 12 percent due to reforms in reporting and settlement systems.

In a notable shift from past policies, Cardoso announced that the CBN will not revert to the contentious practice of financing the Federal Government through monetary means. He asserted, “This position is clear: there will be no return to financing fiscal deficits by the Central Bank.”

The Governor praised fiscal authorities for complementary reforms, such as implementing the Revenue Optimisation framework, creating the National Revenue Agency, and improving the Treasury Single Account.

When outlining the CBN’s strategic agenda for 2026, the Governor emphasized eight priority areas: Enhancing the banking system through strict supervision and improved governance; Achieving lasting price stability through an improved inflation-targeting framework; Updating payment systems and increasing financial inclusion, focusing on contactless payments; Encouraging responsible fintech innovation with stricter licensing and clearer guidelines for digital asset experimentation; Strengthening institutional capacity, alleviating bottlenecks, and improving staff skills; and fostering collaboration with regulators and global partners to enhance Nigeria’s standing as a reliable central bank.

Cardoso elucidated that Nigeria’s flexible FX framework, growing non-oil exports, and broader services trade now provide enhanced protection against external shocks, such as fluctuations in oil prices and shifts in global credit sentiment. He stated, “With oil now accounting for a smaller portion of GDP and government revenue, a sharp decrease in oil prices would be mitigated by the new FX framework.”

Cardoso reiterated that maintaining price stability is the CBN’s “fundamental priority.” He added that the Bank will continue to offer forward guidance, protect market integrity, and utilize technology—including AI—to enhance decision-making. He concluded, “By staying disciplined, forward-thinking, and true to our mandate, we will ensure that Nigeria’s economy remains stable, inclusive, and set for sustainable growth.”