Nigeria’s external position has strengthened significantly, with the current account balance rising 85% to $5.28 billion in Q2 2024, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said on Friday.
Speaking at the 60th Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso noted that the improvement, alongside rising foreign reserves and stronger market fundamentals, positions the country to better withstand global economic shocks.
He revealed that foreign reserves had risen to $46.7 billion by mid-November—the highest in nearly seven years—providing over 10 months of forward import cover.
“These FX reserves are being rebuilt organically through improved market functioning, stronger non-oil exports, and robust capital inflows, not by borrowing,” Cardoso said.
Updating on the ongoing bank recapitalisation exercise, Cardoso said 27 banks have accessed the market to raise fresh capital.
Sixteen banks have already met or exceeded the new regulatory requirements, while others are on track to meet the March 31, 2026 deadline.
Stress tests conducted this year confirm that the sector remains “fundamentally robust,” with key prudential indicators within regulatory benchmarks.
Cardoso also highlighted 2024 reforms, including a market-determined exchange rate, the Electronic Forex Market Surveillance System, and enhanced risk-based supervision, which he said have strengthened Nigeria’s economic resilience.
“With oil now a smaller share of GDP and fiscal revenues, the flexible FX regime, rising non-oil exports, and growing services trade help cushion against oil-price volatility,” he added.
He reaffirmed the CBN’s commitment to disciplined monetary policy and price stability and called for stronger collaboration to address rising insecurity.
CIBN President Pius Olanrewaju praised the resilience of the banking sector, noting that many institutions have already met recapitalisation thresholds ahead of schedule, boosting investor confidence and supporting Nigeria’s $1 trillion economy goal by 2030.
Oliver Alawuba, Chairman of the Body of Bank CEOs and CEO of United Bank for Africa, urged banks to deepen lending to youths, SMEs, women entrepreneurs, and the creative sector, while assuring smooth operations and stronger cybersecurity during the festive season.
