Cardoso: Nigeria attracts $20.98bn foreign capital inflow in 10months,
•To unveil revised FX manual to sustain gain
•CBN will not go back to ways & means borrowing
•Highlights policy priorities for 2026
By Babajide Komolafe, Economy Editor
Nigeria recorded a major rebound in external investor confidence as foreign capital inflows surged to $20.98 billion in the first ten months of 2025, the highest in years, according to the Central Bank Governor, Mr. Olayemi Cardoso.
Speaking at the 2025 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria, CBN, in Lagos, Cardoso said the inflows—representing a 70 per cent rise above total inflows for 2024 and a 428 per cent jump from 2023—reflect renewed trust in Nigeria’s economic direction and the credibility of ongoing monetary reforms.
FX reforms deliver stability
Cardoso highlighted the “visible transformation” in the foreign exchange market, noting that the CBN has sustained the unification of FX windows while fully clearing the multi-billion-dollar backlog that once undermined confidence.
He said the Nigerian Foreign Exchange Code and the deployment of the Electronic Foreign Exchange Management System (EFEMS) have introduced transparency, mandatory order submission, real-time surveillance and enhanced price discovery.
According to him, these reforms “have restored discipline to the market”, reducing the premium between the official and parallel markets to under 2 per cent, down from over 60 per cent a year ago.
He added that the Bank will soon unveil a revised FX Manual aimed at widening market participation, tightening documentation standards, and entrenching regulatory consistency to sustain stability.
External sector strengthens
Cardoso reported significant improvement in the country’s external buffers, with foreign reserves rising to $46.7 billion by mid-November, the highest in almost seven years, providing “over 10 months of forward import cover”.
He noted that reserves are being rebuilt “organically—not through borrowing—but through improved market functioning, stronger non-oil exports and robust capital inflows”.
Nigeria’s current account balance also strengthened, rising 85 per cent to $5.28 billion in Q2 2025 from $2.85 billion in Q1, buoyed by higher non-oil export earnings and improved remittance inflows, which grew by about 12 per cent following reforms to reporting and settlement systems.
No More Ways and Means Borrowing
In a clear break from the past, Cardoso declared that the CBN will not return to the controversial practice of monetary financing of the Federal Government.
“This stance is unequivocal: there will be no return to the practice of financing fiscal deficits by the Central Bank,” he stressed.
He commended fiscal authorities for complementary reforms, including the rollout of the Revenue Optimisation (RevOp) framework, the establishment of the National Revenue Agency, and upgrades to the Treasury Single Account (TSA).
Priorities for 2026
Outlining the CBN’s strategic agenda for 2026, the Governor listed eight priority areas, including: Strengthening the banking system through rigorous supervision and improved governance; Delivering durable price stability using an enhanced inflation-targeting framework; Modernising payments and deepening financial inclusion, with emphasis on contactless payments.; Fostering responsible fintech innovation, with stricter licensing and clearer guardrails for digital-asset experimentation; Strengthening institutional capacity, reducing bottlenecks and enhancing staff skills; and deepening collaboration with regulators and global partners to reinforce Nigeria’s role as a trusted central bank.
Greater Shock Absorption
According to Cardoso, Nigeria’s flexible FX regime, rising non-oil exports and expanding services trade now offer stronger protection against external shocks, including volatility in oil prices and movement in global credit sentiment.
“With oil now a smaller share of GDP and fiscal revenue, a sharp oil-price decline would be cushioned by the new FX framework,” he said.
Commitment to Stability
Cardoso reiterated that price stability remains the CBN’s “bedrock priority”, adding that the Bank will continue to provide forward guidance, safeguard market integrity and leverage technology—including AI—to strengthen decision-making.
“By remaining disciplined, forward-looking and true to our mandate, we will ensure that Nigeria’s economy remains stable, inclusive and primed for sustainable growth,” he concluded.
The post Cardoso: Nigeria attracts $20.98bn foreign capital inflow in 10months appeared first on Vanguard News.
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Nigeria recorded a major rebound in external investor confidence as foreign capital inflows surged to $20.98 billion in the first ten months of 2025, the highest in years, according to the Central Bank Governor, Mr. Olayemi Cardoso.
The post Cardoso: Nigeria attracts $20.98bn foreign capital inflow in 10months appeared first on Vanguard News.
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