CBN Says Nigeria’s Economy Shows Signs of Recovery

(CBN. Photo by The Business Times)

The Central Bank of Nigeria (CBN) says its ongoing economic reforms are beginning to yield positive results, pointing to stronger foreign reserves, a more stable naira and easing inflation as evidence that the economy is improving.

Speaking at the CBN Fair held in Gombe on Tuesday, the CBN Governor, Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, said Nigeria's external reserves had risen above $52.5 billion as of July 17, 2026, the highest level recorded in 17 years and above the bank's target for the year.

According to the apex bank, the rise in reserves reflects stronger foreign capital inflows and renewed confidence from both local and international investors, noting that recent reforms have made Nigeria's financial system more attractive and encouraged greater participation across various investment sectors.

The CBN also pointed to improvements in inflation, noting that headline inflation eased slightly from 15.93 per cent in May to 15.91 per cent in June 2026, with food and core inflation also declining over the same period, an indication that price pressures across the economy are gradually easing.

Cardoso attributed the progress to a series of reforms introduced by the bank over the past 34 months, including tighter monetary policy, unification of the foreign exchange market, greater transparency in currency trading, and measures aimed at improving liquidity within the financial system.

He added that the naira has become more stable, with the gap between the official exchange rate and the Bureau de Change market narrowing to less than two per cent, which he said reflects gradually returning confidence in Nigeria's foreign exchange market.

The CBN said its reforms are focused not only on stabilising prices but also on building a stronger foundation for long-term economic growth, job creation and poverty reduction.

Among the major reforms introduced are bank recapitalisation, the launch of the non-resident Bank Verification Number (BVN), the B-Match foreign exchange trading platform, the Nigeria Payments System Vision 2028, and new liquidity management measures for public sector funds all aimed at strengthening the financial sector, improving transparency, attracting investment and aligning Nigeria's banking system with global standards.

Speaking on this year's CBN Fair theme, "Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development," Cardoso reaffirmed the bank's commitment to expanding digital payment systems nationwide, saying wider adoption of electronic payment channels would improve financial inclusion by giving more Nigerians easier access to banking services while supporting business growth and economic development.

The governor also described the CBN Fair as an important platform for engaging directly with businesses, consumers and other stakeholders, encouraging participants to ask questions, seek clarification on CBN policies, and offer feedback to help shape future initiatives.

Sidi-Ali urged Nigerians to rely only on official CBN communication channels for information regarding the bank's policies, and reminded citizens to protect the national currency by avoiding acts such as spraying, mutilating, hawking or counterfeiting the naira, all of which remain illegal.

The CBN maintained that it will continue implementing policies aimed at sustaining price stability, strengthening financial markets, rebuilding investor confidence and supporting sustainable economic growth, noting that with foreign reserves at a 17-year high and inflation showing signs of easing, its reform programme appears to be steering Nigeria's economy in a positive direction.