RismadarVoice Reporters
September 30, 2026
The Central Bank of Nigeria, CBN, says Nigeria’s net usable external reserves have risen to about $40 billion from $859 million recorded in the second quarter of 2023.
CBN Deputy Governor in charge of Corporate Services, Dr Muhammad Abdullahi, disclosed this on Tuesday in Abuja at the opening of the 38th Seminar of Finance Correspondents and Business Editors.
Abdullahi described the $859 million position in 2023 as an unprecedented low, saying it was insufficient to cover one month of imports.
He said the current CBN leadership inherited significant economic and foreign exchange challenges when it assumed office in 2023, including a fragmented foreign exchange market, outstanding foreign exchange obligations and declining capital inflows.
According to him, Nigeria’s foreign exchange market had multiple windows operating alongside a large parallel market, making it difficult for businesses and investors to obtain foreign currency, plan investments and accurately price goods and services.
Abdullahi said the gap between the official and parallel market exchange rates averaged more than 60 per cent in 2022 and exceeded 100 per cent during certain periods.
He also cited World Bank estimates indicating that the implicit subsidy associated with the exchange-rate system cost the Nigerian economy about three per cent of gross domestic product in 2022.
The deputy governor said pressure on the foreign exchange market significantly affected the country’s external reserves.
While headline gross reserves did not fully represent the amount available for use, he said CBN data showed that net usable reserves had declined to $859 million by the second quarter of 2023.
He added that outstanding foreign exchange forward claims exceeded $7 billion at the time, contributing to uncertainty among businesses and investors.
Abdullahi said the CBN subsequently introduced reforms aimed at improving price discovery, strengthening liquidity management and restoring confidence in the financial system.
Among the measures was the consolidation of foreign exchange market segments in June 2023 and the adoption of a willing-buyer, willing-seller framework.
The CBN also removed restrictions that had prevented 43 categories of imports from accessing foreign exchange through the official market and reviewed outstanding foreign exchange forward claims.
Abdullahi said valid outstanding claims were settled as part of efforts to reduce uncertainty and improve transparency in the market.
He added that stronger liquidity management and banking-sector reforms were necessary to sustain improvements in the foreign exchange market.
Also speaking, CBN Director of Banking Supervision, Dr Olubukola Akinwunmi, said the apex bank had intensified supervision of commercial banks to safeguard financial-system stability.
Akinwunmi disclosed that Nigerian banks are restricted from investing more than 10 per cent of their shareholders’ funds in offshore subsidiaries.
He said the restriction predated the current CBN leadership but was now being enforced more rigorously as part of efforts to improve risk management and ensure banks remain adequately capitalised.
The CBN said its foreign exchange and banking-sector reforms were aimed at strengthening macroeconomic stability, rebuilding confidence and creating a more predictable environment for businesses and investors.
