The Central Bank of Nigeria (CBN) says the gap between the official and parallel foreign exchange rates has narrowed to less than 2 per cent, from an average of 68.2 per cent in the first five months of 2023, as it credited three years of reforms for a more stable financial system.
Deputy Governor, Corporate Services, Dr. Muhammad Sani Abdullahi, disclosed this on Tuesday while declaring open the 38th Seminar for Finance Correspondents and Business Editors, organised by the Finance Correspondents Association of Nigeria (FICAN).
The seminar’s theme is “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era.”
Abdullahi said 33 banks met the revised minimum capital requirements by the end of the two-year recapitalisation programme announced in March 2024, raising a combined ₦4.65 trillion.
He said this gives the banking system stronger capacity to finance larger needs as the economy grows and supports Nigeria’s aspiration to build a one-trillion-dollar economy by 2030.
Recalling the conditions in 2023, he said the foreign exchange market was heavily administered and fragmented, with multiple windows operating alongside a large parallel market.
The gap between official and parallel rates averaged over 60 per cent in 2022 and exceeded 100 per cent at points late in the year. The World Bank estimated that the implicit subsidy from the arrangement cost about 3 per cent of GDP in 2022.
Net usable reserves stood at US$859 million in the second quarter of 2023, while outstanding forward claims had grown to more than US$7 billion. Ways and Means financing had reached about ₦26.6 trillion, and legacy development finance exposures exceeded ₦10 trillion.
According to him, the problems reinforced one another and could not be tackled one at a time. The bank consolidated the foreign exchange windows in June 2023 and moved to a willing-buyer, willing-seller framework.
It removed restrictions on 43 categories of imports, settled valid forward claims, introduced the Electronic Foreign Exchange Matching System and established the Nigerian FX Code. It also tightened monetary policy and began winding down development finance interventions.
Abdullahi said total foreign exchange inflows reached US10.82billion in July2026, of which US7.33 billion, nearly 68 per cent, came from autonomous sources.
Remittances through International Money Transfer Operators hit US950 million that month, while net foreign portfolio inflows totalled US6.31 billion between January and August 2026. He cautioned that portfolio flows can reverse.
Gross reserves stood at US$55.60 billion on 11 September 2026, and the end-August stock provided 11.3 months of import cover. Headline inflation, which peaked at 34.8 per cent in December 2024, fell to 15.43 per cent in July 2026. Real GDP grew by 4.43 per cent in the second quarter of 2026, driven mainly by non-oil activity.
He noted that these outcomes reflect several influences, including monetary policy, oil receipts, remittances and global financial conditions. “They show progress, but they do not mean the pressure on households and businesses has ended,” he said.
The deputy governor stressed that recapitalisation is only the beginning. “Capital, however, is a starting point,” he said, adding that boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects.
He said risk management must go beyond credit risk to cover market, liquidity and operational risks, as well as cybersecurity, third-party dependencies and climate-related financial risks. The CBN, he said, will keep a close watch on governance, asset quality, liquidity and large exposures, and will expect banks to protect customer data, maintain reliable payment services and recover quickly from disruptions.
The apex bank will continue to emphasise risk-based supervision, macroprudential surveillance and enhanced stress testing, alongside consumer protection, fintech regulation, crisis preparedness and resolution planning.
Abdullahi also said recapitalisation should be judged by the quality of services and productive lending it supports, not just the amount raised.
He called for the benefits to reach rural communities, women, young entrepreneurs and small businesses, noting that “a system that people can access, understand and trust is better able to support lasting growth.”
He urged business leaders to engage more closely with banks and to improve transparency, governance and sustainability, which increasingly inform credit assessment.
The deputy governor thanked FICAN and the wider financial press for their engagement over the past three years, describing journalists as important intermediaries between policymakers, financial institutions, investors and the public.
“We value your scrutiny, and the Bank must continue to provide clear information and answer your questions,” he said.
He commended FICAN’s commitment to ethics and professionalism and encouraged members to keep bringing rigour to coverage of the sector.
“This is a shared responsibility,” Abdullahi said, adding that regulators, financial institutions, businesses, investors, the media and the public all have a role in building a system that can withstand shocks and broaden economic opportunity.
