By Seun Ibiyemi
The Central Bank of Nigeria (CBN) is witnessing a major lift in foreign exchange (FX) market confidence following a series of reforms aimed at diversifying inflows and improving liquidity under the leadership of Governor Olayemi Cardoso.
A key driver of this improvement has been the bank’s strategic work to strengthen diaspora remittances, one of Nigeria’s most important FX sources.
The CBN has streamlined inflow channels by fast-tracking the licensing of new International Money Transfer Operators (IMTOs), introducing new remittance-supporting products, adopting the willing-buyer, willing-seller FX model, and ensuring faster access to naira liquidity for authorized operators.
According to the apex bank, these reforms have stabilized the market and supported a steady increase in gross FX reserves.
With annual diaspora remittances estimated at about $23 billion, the CBN projects further growth as confidence in its FX and banking reforms deepens.
The institution has also set an ambitious goal of doubling formal remittance receipts within a year.
Speaking at the Cordros Asset Management seminar titled “The Naira Playbook,” Director of Trading at Verto, Charlie Bird said liquidity conditions have improved “significantly,” enabling foreign businesses including international airlines to repatriate funds without prolonged delays.
He added that the boost in transparency and dollar supply has made Nigeria a more attractive environment for foreign portfolio investors.
The developments mark a positive shift in Nigeria’s FX landscape, with policymakers and market participants optimistic that sustained reforms will reinforce long-term stability and investment inflows.