- Nigeria attracted $20.98 billion in foreign capital inflows in the first ten months of 2025, according to CBN governor, Olayemi Cardoso.
- Cardoso said FX reforms have stabilised the market, reduced rate gaps and restored investor confidence.
- The country’s external reserves rose to $46.7 billion, while the current account balance strengthened significantly in Q2 2025.
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Nigeria has recorded a strong rebound in foreign investor confidence, with capital inflows reaching $20.98 billion between January and October 2025, Vanguard reported.
The figure was reportedly shared by the governor of the Central Bank of Nigeria, Olayemi Cardoso, while speaking at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner in Lagos.
Source: Original
Cardoso said the inflows represent a 70% increase compared to total inflows in 2024 and a 428% rise from 2023. He noted that the trend shows renewed trust in the country’s monetary policy direction and ongoing economic reforms.
FX reforms strengthen market stability
The CBN governor explained that the foreign exchange market has seen major improvements due to ongoing reforms. According to him, the Bank has maintained a unified FX market and cleared all outstanding FX backlogs, which previously discouraged investors.
Cardoso added that the Nigerian Foreign Exchange Code and the Electronic Foreign Exchange Management System (EFEMS) have introduced stronger transparency, real-time monitoring and better price discovery. He said these steps have reduced the gap between official and parallel market rates to less than 2%, compared to more than 60% a year ago.
He also revealed that a revised FX Manual will soon be released to widen market participation, improve documentation and strengthen regulatory consistency.
Cardoso added that Nigeria’s external reserves have grown to $46.7 billion as of mid-November, the highest level in nearly seven years. He said the reserves now provide more than ten months of import cover and are being rebuilt “organically” through improved market activities, rising non-oil exports and stronger capital inflows.
Nigeria’s current account balance also improved significantly, rising to $5.28 billion in the second quarter of 2025 — an 85% increase from the previous quarter. The governor attributed this to higher non-oil export earnings and a 12% rise in remittance inflows following reforms in reporting and settlement processes.
CBN rules out ways and means funding
The CBN governor also stated that the apex bank will no longer engage in monetary financing of the Federal Government’s deficit, describing the policy stance as “unequivocal.”
He said:
“This stance is unequivocal: there will be no return to the practice of financing fiscal deficits by the Central Bank.”
He praised the federal government for rolling out revenue reforms, including the Revenue Optimisation (RevOp) framework, the creation of the National Revenue Agency and improvements to the Treasury Single Account (TSA).
Looking ahead, Cardoso listed the Bank’s strategic focus areas for 2026. These include strengthening banking supervision, enhancing governance, deepening financial inclusion, modernising payments and improving the framework for fintech and digital-asset innovation.
He said the CBN will also build internal capacity and deepen collaboration with local and international regulators.
Source: Twitter
According to the governor, Nigeria is better protected against global economic shocks due to its flexible FX regime, the growth of non-oil exports and the expansion of its services sector. He added that with oil now contributing less to GDP and government revenue, the economy is better positioned to absorb external pressures.
Economic hardship will be over soon — Shettima
Legit.ng earlier reported that Vice President Kashim Shettima had urged Nigerians to exercise a little more patience with the current administration, saying the economic hardship being experienced will soon be over.
Recall that the World Bank hailed the economic reforms of President Bola Tinubu, but noted that about 139 million Nigerians still live in poverty despite these reforms.
Shettima assured Nigerians that the country is entering a new phase of economic prosperity.
Source: Legit.ng
