The Central Bank of Nigeria (CBN) reported that autonomous sources contributed $7.3 billion, or 68%, of the $10.8 billion in foreign exchange (FX) inflows recorded in July 2026, signaling a shift in the market's dynamics. Muhammad Sani Abdullahi, the CBN’s deputy governor, highlighted this development during the 38th Seminar for Finance Correspondents and Business Editors, emphasizing the role of autonomous inflows in stabilizing the FX market. "Of the $10.8 billion in total flows recorded in July, $7.3 billion came from autonomous sources," Abdullahi stated, underscoring the growing reliance on non-interventionist mechanisms to meet foreign exchange demand.",
Remittances through international money transfer operators (IMTOs) added $950 million to the FX inflows in July, while net foreign portfolio investment (FPI) inflows reached $6.3 billion between January and August 2026. These figures reflect a broader trend of improved FX supply, which has reduced the need for direct CBN intervention in the market. Abdullahi noted that the central bank’s reforms, initiated in 2023, have addressed systemic weaknesses that previously plagued the FX sector, including a fragmented market structure and a large parallel currency exchange."
The CBN’s reforms included consolidating existing FX windows, transitioning to an automated trading framework, and removing restrictions on three categories of imports from the official market. Additionally, the bank settled over $5 billion in valid foreign exchange claims, alleviating uncertainties for businesses and investors. The introduction of the Nigeria FX Code, aimed at promoting transparency and curbing speculative behavior, further reinforced market stability. "The reforms, combined with tighter monetary policy and improved liquidity management, have significantly narrowed the gap between official and parallel exchange rates," Abdullahi said."
The average disparity between the official and parallel markets has dropped to below 2.2%, down from an average of 68.2% between January and May 2023. This narrowing gap, coupled with a rise in Nigeria’s external reserves, has bolstered confidence in the FX market. As of September 11, 2026, gross external reserves stood at $55.6 billion, while net reserves—previously below $900 million in 2023 after accounting for short-term obligations—have seen substantial growth."
Despite these improvements, Abdullahi cautioned that challenges persist. "While the FX market has stabilized, the pressure on households and businesses has not entirely subsided," he said. The CBN reiterated its commitment to sustaining gains through continued policy discipline, deepening investment sources, and enhancing FX supply mechanisms. The deputy governor stressed the importance of long-term structural reforms to ensure durability in the market’s resilience."
The CBN’s efforts align with broader economic goals of fostering a more predictable environment for businesses and investors. Analysts note that the shift toward autonomous FX inflows could reduce the central bank’s operational burden while promoting market-driven solutions. However, sustained success will depend on maintaining regulatory rigor and addressing lingering vulnerabilities in the financial system."
The report underscores the CBN’s role in navigating Nigeria’s complex economic landscape, balancing intervention with market liberalization. As the apex bank continues to refine its strategies, the focus remains on achieving lasting stability and fostering conditions for inclusive growth."