The Central Bank of Nigeria declared on Thursday at the CBN Fair in Gombe that the country’s foreign exchange market has recently stabilized. According to Acting Director of Corporate Communications Hakama Sidi-Ali, the bank attributed the stability and rising external reserves of about $52.5 billion to ongoing monetary reforms and easing inflation, signaling an improving Nigerian economy.
Speaking on behalf of CBN Governor Dr. Olayemi Cardoso at the CBN Fair in Gombe on Thursday, Sidi-Ali linked the reserves level to enhanced confidence in Nigeria’s ability to meet external obligations and support the foreign exchange market. The bank cited the combination of rising reserves, easing inflation, and recent foreign exchange (FX) market stability as evidence that its monetary reforms are yielding positive macroeconomic results.
The Central Bank of Nigeria’s rising external reserves, currently estimated at about $52.5 billion, were highlighted as a key indicator of the country’s improving economic fundamentals, according to Acting Director of Corporate Communications Hakama Sidi-Ali.
CBN officials said the “recent stability” in the foreign exchange market is primarily the outcome of ongoing monetary and FX reforms. These include significant interventions to improve FX liquidity, such as the release of $500 million to address the FX backlog, following an earlier disbursement of about $2 billion to clear verified foreign exchange liabilities across sectors like manufacturing, aviation, and petroleum. According to CBN sources, nearly $2 billion in backlog payments have been cleared over the past three months, a strategy aimed at stabilizing the naira and restoring confidence in the FX market.
The bank acknowledged that FX shortages and an estimated $7 billion backlog in matured forwards remain challenges but emphasized its commitment to resolving outstanding obligations. CBN’s approach includes sweeping revisions to the foreign exchange regulatory framework, notably the fourth edition of the Foreign Exchange Manual, which became effective June 1, 2026. The manual introduces stricter compliance measures, including penalties of N100 million for authorised dealer banks consummating FX transactions without adequate documentation, as well as N10 million fines for each improperly documented transaction. These rules are designed to tighten accountability and improve transparency in FX operations, according to official CBN communications.
Additional regulatory measures include clearer guidelines for interbank FX trading through the Electronic Foreign Exchange Matching System (EFEMS), which mandates a minimum trade size of $100,000 with $50,000 increments. The Nigerian Foreign Exchange (FX) Code, launched on January 28, 2025, was also cited as a foundational reform to promote a stable financial ecosystem and ensure ethical conduct among authorised dealer banks. CBN officials explained that these reforms align domestic FX practices with international standards and support a more disciplined market environment.
Further controls include the reaffirmation of a $10,000 threshold for the cross-border movement of foreign currency without declaration, while outbound travelers may carry up to $50,000 subject to declaration requirements. The bank also mandated that all international money transfers be paid in naira to reduce dollarization and that all domestic transactions be denominated in naira. Exporters who fail to repatriate proceeds on time face a 1% penalty, and importers who do not submit exchange documents promptly risk temporary or permanent restrictions from FX access. Licensed Bureau De Change operators are now permitted to access FX through any authorised dealer at prevailing market rates to improve liquidity and transparency in the retail segment of the Nigerian Foreign Exchange Market, officials said.
CBN’s communication stressed that these combined efforts are intended to strengthen investor confidence and attract foreign investment by streamlining and unifying multiple exchange rates, thereby reducing arbitrage opportunities and increasing market transparency. The bank also highlighted the role of FX liquidity improvements, backlog clearance, and unified regulatory rules in creating a more predictable environment for businesses and investors.
The statements at the CBN Fair in Gombe form part of a broader public outreach initiative designed to communicate the progress of CBN reforms to citizens, businesses, and investors. Sidi-Ali’s remarks reflect the official position of the CBN leadership on the state of Nigeria’s foreign exchange market and economy. The bank’s messaging underscores that while challenges such as FX shortages and outstanding backlogs persist, current reserve levels, FX reforms, and easing inflation collectively indicate an improving economic outlook.
These developments follow a series of policy actions implemented over the past two years, including the January 2025 launch of the FX Code and ongoing updates to the FX Manual. The CBN’s Trade and Exchange Department continues to oversee these regulatory frameworks to modernize FX administration and reinforce Nigeria’s macroeconomic foundations. The bank has indicated that its efforts to stabilize the FX market and support sustainable growth will continue alongside measures to address remaining structural issues in the economy.
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