The Central Bank of Nigeria (CBN) pointed to improving foreign exchange stability, rising external reserves and easing inflation as evidence that its monetary reforms are gaining traction.

Nigeria’s external reserves rose to more than $52.5 billion as of July 17, 2026, the highest level in 17 years and above the apex bank’s annual target,

CBN Governor, Olayemi Cardoso, said the stronger reserve position, relative stability in the foreign exchange market and a gradual moderation in inflation reflect the impact of reforms introduced over the past 34 months to restore macroeconomic stability.

Cardoso, who was represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, spoke at the CBN Fair held at the International Conference Centre in Gombe State, themed, ‘Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development’.

The CBN boss recalled that headline inflation eased marginally to 15.91 per cent in June from 15.93 per cent in May, while both food and core inflation also moderated over the period. He attributed the trend to disciplined monetary tightening, exchange rate unification and improved transparency in the foreign exchange market.

He added that the naira had continued to strengthen, with the gap between the official exchange rate and the bureau de change (BDC) market narrowing to below two per cent, a development he linked to sustained foreign exchange inflows and renewed investor confidence.

Cardoso said the CBN had implemented a series of reforms over the past 34 months aimed at fostering sustainable economic growth, boosting employment and reducing poverty.

According to him, the measures include the unification of the foreign exchange market, the banking sector recapitalisation, the introduction of the non-resident Bank Verification Number (NRBVN), deployment of the B-Match foreign exchange trading platform and the Nigeria Payments System Vision 2028.

He also highlighted the 75 per cent cash reserve ratio (CRR) on non-treasury single account (TSA) public sector deposits, describing it as a monetary policy tool designed to manage excess liquidity and contain inflationary pressures.

Cardoso said the apex bank, in collaboration with the Financial Markets Dealers Association (FMDA), had introduced the Nigerian Overnight Financing Rate (NOFR) as a transparent, market-driven benchmark for short-term funding transactions, bringing Nigeria’s money market infrastructure closer to global standards.

Although the latest reserve and inflation figures suggest improving macroeconomic conditions, economists have consistently argued that stronger external reserves and slower inflation do not immediately translate into lower living costs, as businesses and households continue to contend with imported inflation, elevated borrowing costs and exchange rate pass-through effects.