The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, informed Senate Wednesday that Nigeria’s External Reserves hit $52.73billion on July 9, 2026 which was $48.88billion in January this year.
Cardoso who stated this in his presentation to the Senate Committee on Banking, Insurance and other Financial Institutions during statutory engagement, said the increase which is 7.9 percent, signifies stronger external reserve accumulation and positive outlook for the Nation’s economy .
“The restoration of confidence in the foreign exchange market has contributed to stronger external reserve accumulation.
“Gross external reserves increased by 7.9 percent to $52.73billion as at July 9, 2026, from $48.88billion in January 2026, while net external reserves rose by 900 percent to over $40billion which was $3.99billion in 2023”, he said.
The nation’s economy generally according to him, has very positive outlook for the second half of 2026 not withstanding persistent uncertainties as inflation is expected to continue its gradual moderation, supported by tight monetary conditions, improved policy coordination , greater exchange rate stability and easing supply – side pressures.
He added that the most significant achievement made during the period under review , was the N4.65trillion mobilised from the Banking Sector Recapitalisation Programnne in March this year.
“The programme resulted in the mobilisation of N4.65trillion in fresh capital , ranked as one of the most successful banking sector capital – raising exercises in Nigeria’s history.
“Notably , 72.55 percent of the capital raised originated from domestic investors , while 27.45percent , came from foreign investors , reflecting both strong domestic participation and growing international confidence in Nigeria’s economic prospects “, he said .
According to him, 33 banks met the revised capital requirements and improving key financial soundness indicators , while active engagement is ongoing with affected stakeholders to resolve the status of the few non – compliant banks in a manner that safeguards financial stability , protects depositors and ensures regulatory compliance.
He added that inflation fell to 15.06 per cent in February 2026, prompting the Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate from 27 per cent to 26.5 per cent, but rose again to 15.93 per cent in May following external shocks.
Earlier at the beginning of the statutory engagement, the Committee through its Chairman, Senator Adetokunbo Abiru (Lagos East ), commended the CBN for maintaining exchange rate stability, improving transparency in the foreign exchange market and successfully implementing the banking recapitalisation programme.
He however, warned that stronger banks must do more to support productive sectors.
“Recapitalisation should not become an end in itself. Ultimately, the true measure of a stronger banking system lies not merely in larger balance sheets but in its capacity to mobilise savings efficiently and channel affordable credit to productive sectors of the economy,” he said.
He added that agriculture, manufacturing, infrastructure, technology and small and medium enterprises should be the major beneficiaries of the increased capital base of banks just as he expressed concern over reports indicating moderation in private sector credit despite banks raising unprecedented capital.
After the presentations, Senator Abiru announced that the committee would proceed into a closed-door session to enable lawmakers engage the CBN governor and his management team on the issues raised.
