We Inherited Net External Reserve At $859m — CBN

The Central Bank of Nigeria (CBN) has disclosed that Nigeria inherited net usable foreign reserves of only $859 million in the second quarter of 2023, after accounting for identified short-term obligations.

CBN Deputy Governor, Financial System Stability, Philip Ikeazor, disclosed this while speaking on the reforms undertaken by the apex bank since the change in administration.

According to him, the country’s foreign exchange market was heavily administered and fragmented at the time, with multiple official windows operating alongside a parallel market.

He said the gap between official and parallel market exchange rates had averaged more than 60 per cent in 2022 and exceeded 100 per cent at certain periods.

The deputy governor said the situation created significant uncertainty for businesses and investors and weakened confidence in the foreign exchange market.

He also disclosed that outstanding foreign exchange forward claims exceeded $7 billion at the time, adding to pressure on the country’s external position.

Beyond the foreign exchange market, Ikeazor said the CBN inherited significant domestic financial pressures, including Ways and Means financing of about N26.6 trillion.

He added that legacy development finance exposures exceeded N10 trillion, contributing to liquidity pressures and making inflation more difficult to contain.

The CBN subsequently introduced a series of reforms aimed at improving the functioning of the foreign exchange market and strengthening the financial system.

These included consolidating existing foreign exchange windows, adopting a willing-buyer, willing-seller framework and removing restrictions affecting 43 categories of imports.

The apex bank also settled valid outstanding foreign exchange forward claims and introduced the Electronic Foreign Exchange Matching System to improve transparency in foreign exchange transactions.

Ikeazor said the Nigerian FX Code was also introduced to strengthen market conduct and promote greater confidence among participants.

The CBN has said the reforms have contributed to improved foreign exchange market stability and stronger accumulation of external reserves.

Recent CBN figures show that gross external reserves rose to $52.73 billion by July 9, 2026, from $48.88 billion in January. Net external reserves also rose significantly during the period.

The apex bank said the improvement reflected stronger confidence in the foreign exchange market and increased reserve accumulation.

The CBN maintained that continued reforms in the banking and financial sectors would be necessary to strengthen Nigeria’s economic resilience and support long-term growth.