Economy

Nigeria’s foreign reserves hit $49bn

Published

6 months ago

February 10, 2026

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The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has disclosed that Nigeria’s external reserves have risen to about $49 billion as of February 5, 2026, describing the development as a clear sign of improving confidence in the country’s economy.

Cardoso spoke on Monday in Abuja at the second edition of the National Economic Council (NEC) Conference, where he explained that the growth in reserves represents a 4.93 per cent increase from the last figure of $46.7 billion which marks a major turnaround from what the country faced when the current CBN leadership took over.

“This is obviously a very important statistic,” Cardoso said. “When we took over, the net reserve figure was about $3 billion. As at the end of last year, the net reserve figure had gone up strongly into the 30s. And as I said, as of February 5, 2026, it is $49 billion. We are now net buyers.”

He explained that the CBN now allows the foreign exchange market to largely determine prices, while the Bank steps in to buy foreign exchange when necessary. According to him, this approach has helped to close the gap between the official and parallel market exchange rates. “The premium between the official and parallel market rates has collapsed to under two per cent,” he said.

Cardoso said remittances from Nigerians living abroad have played a major role in boosting the country’s foreign reserves. He noted that Nigerians in the diaspora come from all parts of the country and are keen to support the economy by sending money home.

“Remittances have made a big difference to how we have grown our reserves,” he said. “The diaspora come from every single state represented here. We have engaged with them and made it easier for them to remit money back to Nigeria.”

He added that the cooperation of state governors and other leaders would be crucial in sustaining this progress in the coming years.

The CBN governor said recent reforms have also made foreign exchange more accessible to ordinary Nigerians, especially those travelling abroad.

“When people travel now, you don’t have to look for foreign exchange to travel,” he said. “You use your naira card and pay for whatever you want. Now the naira is more competitive and people are not afraid to hold naira.”

Cardoso recalled that in the past, the naira was widely rejected in parts of the West African sub-region, but said that situation has changed. “In those days, if you went around West Africa and gave them naira, nobody wanted to touch it,” he said. “That has all gone now. There is predictability and you can plan.”

He warned Nigerians who are holding foreign currency without real need that such actions could lead to losses. “Those holding unnecessary foreign exchange reserves are losing money every day,” he said.

On the banking sector, Cardoso said ongoing recapitalisation efforts are strengthening banks and positioning them to support Nigeria’s long-term economic goals, including the ambition to build a $1 trillion economy.

“We all know how important the banking system is,” he said. “Banks are recapitalising, investors are earning positive real returns, and equity markets are recovering due to improved earnings and stability.”

He said the CBN is also working on clear succession rules to ensure smoother leadership transitions in banks and greater resilience during periods of uncertainty.

Cardoso said recent economic data shows signs of stability, pointing to GDP growth of 3.98 per cent, a strong current account position, and a $3.42 billion surplus recorded in the third quarter of 2025. “We haven’t had this kind of current account strength in a very long time,” he said.

He also noted that inflation has moderated to about 15.15 per cent, adding that the figures show that recent reforms are producing results.

According to him, the CBN has developed a roadmap for the period from 2026 to 2030, aimed at using macroeconomic stability to drive productivity and growth. “Without stability, there will be no growth,” Cardoso said. “If there is something positive that has come out of this, it is the fact that we now have stability.”

He explained that the roadmap focuses on reducing inflation, normalising the foreign exchange market, and strengthening the financial system. In simple terms, he said, the CBN plans to stay on course with current policies. “We will continue doing the things we have done,” he said.

Cardoso said key priorities include price stability through a gradual move towards inflation targeting, strengthening external reserves, and protecting the value of the naira. “We will do whatever it takes to safeguard the value of the naira,” he said.

He, however, warned that there are still risks that must be carefully managed. One of them, he said, is excess liquidity in the system. “There is still a lot of liquidity in the system and we must manage it very carefully,” he said. “We are not out of the woods yet.”

He also pointed to the election cycle as a possible risk, noting that large spending during election periods could threaten economic stability if not properly managed.

Cardoso stressed that monetary policy alone cannot solve all economic problems. “Monetary policy is necessary, but it is not enough on its own,” he said. “No central bank can sustainably deliver low inflation where issues like food supply shocks, high energy costs, and poor infrastructure continue to push prices up.”

He said lasting stability requires fiscal discipline, supply-side reforms, and strong cooperation among government institutions. “Monetary stability requires fiscal discipline and credibility,” he said. “Policy coherence is a strong anchor for stability.”

Cardoso said the CBN will continue to maintain a disciplined interest rate path, while fiscal authorities are expected to support policies that improve revenue, manage debt responsibly, and modernise public financial management.

He also stressed the importance of state governments, saying subnational governments control a large share of public revenue and can strongly influence inflation, growth, and overall economic stability. “Subnational governance can significantly affect macroeconomic outcomes,” he said.

The CBN governor urged state governments to align with national stability goals by investing in infrastructure, managing debt responsibly, and working with the financial system to expand access to credit and promote financial inclusion.

Looking ahead to 2030, Cardoso said success would mean single-digit inflation, growing foreign exchange reserves supported by non-oil exports, foreign investment, and remittances, as well as a strong and inclusive financial system. “Our view is that the future is looking bright,” he said.

In his welcome address, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, praised President Bola Ahmed Tinubu for the reforms carried out so far, saying they have improved the financial position of states and local governments.

“Today, a more united federation is gathered here because of the choices you made,” Bagudu said. “Your reforms have improved the fiscal condition of states and local governments, while much of the burden is borne by the Federal Government.”

He said the President’s focus on grassroots development reflects true federalism and has encouraged states to support national reforms.

Bagudu said members of the National Economic Council, representing the 36 states and the Federal Capital Territory, have actively participated in shaping reform measures and largely support the direction of the government. “Most of them, regardless of party, believe you are pursuing what the country needs,” he said.

He added that governors have been working closely with the Federal Government on key national issues, including security, infrastructure, fiscal and monetary coordination, and efforts to boost domestic production and curb oil theft.

Economy

NEC approves $4.5bn refinancing of $3.3bn oil-backed loan

Published

20 hours ago

August 4, 2026

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The National Economic Council on Monday approved the refinancing of the $3.3bn Project Gazelle Pre-Export Finance Facility through a new $4.5bn facility named Project Gazelle 2.

The approval came at the 159th meeting of NEC, held virtually and chaired by Vice President Kashim Shettima, following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, on the significance of the refinancing arrangement.

The approval allows the Nigerian National Petroleum Company Limited to refinance the outstanding balance of approximately $1.5bn under the original 2023 facility while unlocking an additional $3bn in liquidity to strengthen Nigeria’s external reserves and support ongoing fiscal and infrastructure priorities.

Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, Stanley Nkwocha, revealed details of the approval in a statement he signed Monday titled ‘NEC Approves Refinancing of $3.3bn Project Gazelle to Optimise Cost, Unlock Additional Liquidity.’

According to Nkwocha, Council observed the significance of unlocking additional liquidity for the federation and pledged its support for the actualisation of the initiative.

Briefing journalists after the meeting, Oyedele explained that the new arrangement had been structured on considerably more favourable terms than the original facility, including a substantial reduction in the volume of crude oil pledged to secure the loan.

He explained, “The refinancing has been structured on more favourable terms than the original facility, including a reduction in the volume of pledged crude oil from 90,000 barrels of oil per day to approximately 78,750 barrels of oil per day, a 12.5 per cent reduction.”

Oyedele said the reduction in pledged volume translated directly into more crude available for the federation to sell and retain revenue from outside the terms of the facility.

“Under the new arrangement, an additional 11,250 barrels of oil per day for the federation will be released, while there will be a reduction in the pledged crude volumes by NNPC Limited,” he said.

The Minister described the refinancing as a dual achievement, improved liquidity access on better terms while simultaneously strengthening the country’s overall financing structure.

He stated, “While accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures.”

In his opening remarks to Council, Vice President Shettima called for the design of a responsive, scalable and data-driven social protection policy to confront multidimensional poverty in Nigeria, framing the challenge in vivid and deeply human terms.

He argued, “Government policies are often heard before they are seen they speak through the price of food, the condition of hospitals, the records in schools, the strain on families, the confidence of those who invest their labour in the nation’s future, and, very importantly, the ambitions of state governments.”

The VP urged Council members to ensure that every decision reached at NEC left ordinary Nigerians with confidence that their government was attentive and responsive to their daily struggles.

“Every decision we make must assure the citizens that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose,” he said.

Project Gazelle was originally structured in 2023 as a pre-export finance facility secured against future crude oil sales, designed to provide Nigeria with dollar liquidity to defend the naira and support foreign exchange market stability amid the sharp currency volatility that followed the administration’s unification of exchange rate windows.

The refinancing under Project Gazelle 2 extends and restructures that facility on improved terms, reflecting both the larger size of the new facility and NNPC Limited’s improved negotiating position following three years of oil sector reforms aimed at attracting fresh investment from international oil companies and boosting domestic production capacity.

Economy

CBN lists 5 strategies to drive next stage of Fintech growth in Nigeria

Published

2 days ago

August 3, 2026

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The Central Bank of Nigeria (CBN) has disclosed that the next stage of fintech development in Nigeria must focus on five important outcomes to achieve sustainable growth of the initiative.

The CBN Governor, Mr. Yemi Cardoso, said in a goodwill message at the 3rd Business Journal Fintech & Financial Inclusion Roundtable 2026 in Lagos that Nigeria’s fintech development must deliver digital financial services that are reliable, secure, fair and accessible.

Cardoso, who was represented by Dr. Rakiya Yusuf, Director, Payments System Supervision, added that Nigerians should be able to transact with confidence, including during periods of high demand.

He said, “Charges should be clear, complaints resolved promptly and failed transactions addressed without unnecessary hardship to customers, Cybersecurity and fraud prevention must remain a shared responsibility, institutions must continually invest in secure technology, effective controls and practical customer education.”

Mr. Babatunde Ajiboye, Assistant Director at CBN, who stood in for Yusuf, said another major strategy is to ensure that “competition must also remain open and fair, with qualified participants having equal access to essential payment infrastructure.”

The apex bank said it cannot achieve these strategies alone, saying that banks, fintech companies, mobile money operators, switches, processors, telecom companies, consumer groups and government institutions all have important roles to play to realise the outcomes.

Looking ahead, the CBN said: “The future of Nigeria’s digital financial ecosystem is promising. Our population is young, entrepreneurial and increasingly connected. Our financial institutions have demonstrated a strong capacity for innovation.

“With appropriate regulation, responsible conduct and sustained investment, Nigeria can build a digital financial system that serves as a model for Africa and the wider world.”

The CBN governor promised that the apex bank will continue to support innovation that solves real problems, expands access and strengthens the economy.

“We will also continue to act where market conduct, concentration, weak governance or operational risks threaten customers or the stability of the system. Our message is simple: innovation welcome, fair competition is essential and public trust must remain at the centre of everything we do.”

He commended the Business Journal Media Group for organising the Roundtable and encouraged participants to engage openly and develop practical recommendations that will advance a safer, fairer and more inclusive digital financial ecosystem in Nigeria.

Economy

See Dollar to Naira exchange rate today, August 3, 2026

Published

2 days ago

August 3, 2026

EMMANUEL AGAJI

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The naira opened the week with a relatively stable performance against the United States dollar at both the official Nigerian Foreign Exchange Market (NFEM) and the parallel market on Monday, August 3, 2026.

Data published by the Central Bank of Nigeria showed that the official NFEM rate was trading around ₦1,368 per dollar, with the most recent available closing rate at ₦1,368.22/$ as of August 2. The CBN stated that the NFEM rate is derived from the volume-weighted average of trades executed in the market.

The official market has remained within a narrow band in recent sessions. Historical NFEM data indicate that the dollar closed at about ₦1,365.12 on July 31 and ₦1,365.53 on August 1, suggesting only mild day-to-day fluctuations in the official exchange window.

In the parallel market, commonly referred to as the black market, currency traders in Lagos quoted the dollar at about ₦1,410 per dollar for buying and ₦1,425 per dollar for selling on the latest available market update. This places the gap between the official and parallel market rates at roughly ₦57 per dollar.

The spread between both markets has narrowed considerably compared with the wider premiums seen during the height of Nigeria’s foreign exchange volatility in 2024, reflecting improved liquidity conditions and reduced speculative pressure in recent months.

For individuals and businesses, this means $100 would exchange for about ₦136,800 at the official NFEM window and about ₦142,500 at the parallel market selling rate, depending on the channel used.

Analysts say the naira’s near-term direction will continue to depend on foreign exchange inflows from oil exports, portfolio investors, remittances, and the Central Bank’s liquidity management operations in the official market.