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CBN’s forex reforms, diaspora remittances, and higher crude output lift reserves
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Oil production meets OPEC+ quota, forex inflows stabilise naira
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Apex bank targets multiple FX sources to sustain macroeconomic stability
Nigeria’s foreign exchange reserves have risen above the $40 billion mark, reaching $40.16 billion last week, driven by rising forex inflows and a marginal increase in crude oil output.
According to the Central Bank of Nigeria (CBN), gross external reserves stood at $37.934 billion on April 30 and rose to $38.298 billion by May 14, continuing their upward trajectory. Nigeria’s crude production in July increased by 0.67 per cent to 1.51 million barrels per day (mbpd), meeting OPEC+’s quota for the third time this year, though below the 2025 benchmark of 2.06 mbpd.
The surge in reserves is partly attributed to CBN-led forex reforms under Governor Olayemi Cardoso, aimed at boosting local production, reducing domestic forex demand pressure, and stabilising prices. These measures include:
- Multiple FX sourcing strategies to increase dollar inflows
- Enhancing dollar access for manufacturers and retail end-users
- New products and licenses for International Money Transfer Operators (IMTOs)
- Implementation of a willing buyer-willing seller FX model
- Timely naira liquidity access for IMTOs
The initiatives have simplified dollar-inflow channels and contributed to a stronger, more stable naira. Diaspora remittances, estimated at $23 billion annually, remain a significant source of forex, and the CBN aims to double formal remittance receipts within a year.
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Charlie Bird, Director of Trading at Verto, noted that dollar liquidity is now more balanced, allowing foreign investors and airlines to repatriate funds smoothly. Speaking at the Cordros Asset Management seminar on “The Naira Playbook”, he said, “Nigeria is now the darling of foreign investors because of improved dollar liquidity due to positive CBN reforms.”
The apex bank’s combined efforts in market confidence-building, robust banking systems, and price stability continue to underpin Nigeria’s economic growth and forex resilience.
