Nigeria's foreign exchange reserves have surged to $52.5 billion, marking the highest level in 17 years, according to the Central Bank of Nigeria (CBN). This announcement was made during the CBN Fair held in Lokoja, Kogi State, where the acting director of the bank's Corporate Communications and Investor Relations Department, Mrs. Hakama Sidi Ali, shared insights on the nation's economic indicators.

The CBN also reported a decline in headline inflation, which fell from 15.91 percent in June to 15.43 percent in July 2026. Both food and core inflation rates have shown a downward trend, contributing to a more stable economic environment. Sidi Ali attributed these positive changes to a combination of sustained monetary policy tightening, increased transparency in the foreign exchange market, and growing investor confidence.

Sidi Ali highlighted that the foreign reserves had surpassed the CBN's annual target, driven by consistent inflows and renewed interest from investors across various asset classes. The naira has also appreciated, with the gap between the official foreign exchange market and the Bureau de Change segment narrowing by two percent. These developments suggest that the reforms initiated under CBN Governor Olayemi Cardoso are beginning to yield positive results.

Key initiatives mentioned by Sidi Ali include the unification and increased transparency of the foreign exchange market, the recapitalization of the banking sector, and the introduction of the non-resident Bank Verification Number (BVN). Additionally, the B-Match platform for foreign exchange trading and the Nigeria Payments System Vision 2028 were cited as critical components of the CBN's strategy to enhance monetary and price stability.

The CBN has also implemented a 75 percent Cash Reserve Ratio on non-Treasury Single Account public sector deposits, a measure aimed at strengthening liquidity management and reducing inflationary pressures. Sidi Ali emphasized the importance of efficient payment systems in promoting financial inclusion and economic development, urging Nigerians to adopt alternative payment channels.

At the event, Mr. Zubairu Abdulrahman Salihu, the CBN Controller for Lokoja, noted that Kogi State has achieved a 94 percent banking penetration rate, the highest in Nigeria. This statistic, derived from the 2023 Access to Financial Services Survey conducted by Enhancing Financial Innovation & Access (EFInA), positions Kogi to leverage the expanding digital financial ecosystem.

Salihu encouraged greater adoption of digital payment platforms, particularly among farmers, traders, and small businesses, to enhance access to financial services and foster inclusive economic growth. He reiterated the CBN's commitment to developing a safe and efficient payment ecosystem through collaboration with financial institutions and fintech companies.

The CBN Fair also featured discussions on various topics, including Nigeria's payment system, microfinance, foreign exchange operations, and financial consumer protection, providing a platform for Nigerians to engage with the bank's policies and initiatives.