The Central Bank of Nigeria (CBN) has intensified its efforts to stabilize the naira through strategic interventions, boosting foreign exchange (FX) supply, reducing market distortions, and ensuring effective reserves management.
The apex bank’s liquidity injections and enforcement of FX regulations have curbed sharp depreciation in both official and parallel markets while strengthening foreign investor confidence in the Nigerian economy. Recent policy implementations, including the injection of $360 million into the market, have helped mitigate further devaluation pressures.
As of Monday, the official FX rate stood at N1,530/$, while the parallel market rate was N1,570/$. The stability of the naira has been supported by inflows from Foreign Portfolio Investors (FPIs), International Oil Companies (IOCs), and previous CBN interventions totaling $18.40 million.
Analysts at Cordros Research noted a week-on-week increase of $12.06 million in gross FX reserves, bringing the total to $38.36 billion, after nine consecutive weeks of decline. While concerns remain over oil receipts due to fluctuating prices, the CBN’s sustained market interventions are expected to prevent drastic naira depreciation.
Stakeholders Applaud CBN’s Reforms
Industry leaders have praised the CBN’s policies for restoring confidence in the forex market and attracting new investments.
Philip Sigwart, Group CEO of Baobab Group, stated that Nigeria’s forex market has "turned a corner," enabling more businesses to invest. He revealed plans to inject fresh capital and expand operations in Nigeria, targeting 100 branches and a N1 trillion balance sheet.
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), credited the naira’s stability to key CBN policies, including the Foreign Exchange Code. He emphasized that increased transparency and accountability have helped curb speculative activities.
Similarly, Stevens Michael, CEO of Countryside Markets Limited, commended the CBN’s efforts to restore order in the FX market, stating that eliminating market distortions is critical to sustaining long-term stability.
CBN Enforces FX Code for Transparency
Olayemi Cardoso, CBN Governor, has reaffirmed the bank’s commitment to ethical conduct, fairness, and efficiency in the FX market. The Foreign Exchange Code (FX Code), built on six core principles—including ethics, governance, risk management, and compliance—aims to align Nigeria’s forex practices with global standards.
Cardoso emphasized that violations of the FX Code would attract penalties under the CBN Act 2007 and BOFIA Act 2020. The recent introduction of the Electronic Foreign Exchange Matching System (EFEMS) is another step toward eliminating market distortions and enhancing real-time FX transparency.
In another significant move, the CBN lifted the 2015 restriction on 41 items accessing FX, facilitating trade and investment while reinforcing economic growth.
Boosting Remittances and Diaspora Investments
To further support naira stability, the CBN has introduced two new financial products—the Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account—targeting Nigerians in the diaspora.
These accounts will streamline remittances, encourage investments, and provide financial flexibility. Holders can maintain balances in foreign currency or naira, invest in bonds, equities, and mortgage products, and convert funds at prevailing exchange rates through authorized dealers.
By expanding international money transfer operations and implementing a willing buyer-willing seller model, the CBN aims to harness diaspora inflows for sustainable economic development.
Sustained Policy Vigilance for Long-Term Stability
The CBN’s aggressive interventions and regulatory reforms continue to shape a more resilient FX market. However, maintaining macroeconomic stability will require continuous vigilance, proactive monetary policies, and strategic reserve management to navigate global and domestic economic uncertainties.