Nigeria has recorded one of its strongest external sector performances in nearly a decade, attracting $20.98 billion in foreign capital inflows in the first ten months of 2025. This was disclosed by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, during the 60th Annual Bankers’ Dinner, where he highlighted the country’s improving macroeconomic stability, renewed policy credibility, and rising investor confidence.
According to Cardoso, the $20.98 billion figure represents a significant leap—amounting to a 70% increase over total capital inflows recorded in 2024 and an extraordinary 428% surge compared to the $3.9 billion inflows captured in 2023. The governor noted that this dramatic improvement reflects a clear shift in global investor appetite for Nigerian assets, driven by reforms aimed at strengthening the foreign exchange market, enhancing transparency in financial operations, and rebuilding trust in monetary policy.
Although the National Bureau of Statistics (NBS) has only released capital importation data for the first quarter of 2025—showing Nigeria attracted $5.6 billion during Q1—Cardoso confirmed that inflows accelerated sharply across subsequent quarters. According to NBS historical data, capital imports stood at $3.9 billion in 2023 and $12.3 billion in 2024, making the 2025 performance particularly impressive.
External Sector Sees Decisive Improvement
The CBN governor further revealed that Nigeria’s current account balance strengthened significantly over the course of the year. The balance rose by more than 85%, climbing from $2.85 billion in the first quarter to $5.28 billion by the second quarter of 2025. Cardoso attributed this improvement to rising non-oil export earnings, improving FX inflows, and reforms that have made the FX market more efficient and market-driven.
Nigeria’s foreign reserves have also enjoyed a major boost, reaching $46.7 billion by mid-November 2025—its highest level in almost seven years. With over ten months of import cover, the country’s external buffers are now at their strongest point in a decade.
A particularly notable development, Cardoso stressed, is that the reserves are being rebuilt “organically—not through borrowing.” Instead, the growth is being driven by improved FX market functioning, stronger non-oil exports, and revitalized capital inflows. This marks a significant departure from previous periods where external reserve accumulation was often supported by external debt.
Non-Oil Exports, Remittances Drive Momentum
Despite oil production averaging between 1.45 million and 1.52 million barrels per day in 2025, the non-oil sector remained the standout growth driver. Cardoso reported that non-oil exports expanded by over 18% year-on-year, supported by improved competitiveness brought about by a more flexible and market-determined exchange rate regime.
The governor also highlighted improvements in diaspora remittances, which grew by approximately 12% in 2025. He attributed this rise to enhanced transparency and settlement efficiency in the FX ecosystem, as well as increased trust in official remittance channels. Further growth is expected in 2026 as adoption of the Non-Resident Bank Verification Number (BVN) system—launched earlier in the year—continues to rise.
CBN Maintains Flexible FX Strategy
Cardoso reiterated the CBN’s commitment to maintaining a flexible exchange-rate framework that allows the naira to function as a shock absorber while reducing excess volatility. According to him, the FX reforms implemented over the past year are central to restoring macroeconomic stability and positioning Nigeria to attract sustainable long-term investment.
With capital inflows surging, external reserves rising, and remittances strengthening, Nigeria’s external sector appears poised for continued recovery heading into 2026.
