Naira stability attracting foreign investment amid economic reforms - CBN
By Seun Ibiyemi
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has stated that ongoing monetary reforms and currency stabilisation are positioning Nigeria as a more attractive destination for foreign direct investment (FDI).
Speaking at the National Economic Council (NEC) Conference in Abuja on Monday, Cardoso highlighted that restored stability in the Naira and the foreign exchange market is providing the predictability needed to draw international investors into the country’s agribusiness, manufacturing, and service sectors.
“The Naira is now more competitive, and people are not afraid to hold it,” Cardoso said.
“By allowing the market to determine foreign exchange levels and accumulating reserves sustainably, we are creating confidence for both domestic and foreign investors.”
He revealed that Nigeria’s external reserves have risen to $49 billion as of February 5, 2026, and the gap between official and parallel market rates has collapsed to under 2 percent.
These developments, according to Cardoso, reduce the risks for investors, making Nigeria a more reliable and predictable market.
The CBN Governor also outlined the Bank’s roadmap for attracting FDI, which includes transitioning from an interventionist foreign exchange model to a market-driven approach.
This framework aims to stabilise liquidity in the Nigerian Autonomous Foreign Exchange Market (NAFEM) while enabling the CBN to act as a stabiliser rather than a primary provider, creating a conducive environment for foreign investors.
“Liquidity is increasing, and foreign investors now have confidence that their capital will be protected.
This is critical for supporting Nigeria’s target of becoming a $1 trillion economy,” Cardoso explained.
He added that the Bank’s reforms anchored on disinflation, FX normalisation, and financial-system resilience are strengthening confidence in the real economy.
On the banking sector, Cardoso noted that recapitalisation efforts are critical to supporting investment flows, while emphasising that monetary stability requires fiscal discipline.
Also speaking at the conference, Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, described Nigeria’s reform agenda as gaining global recognition.
He cited a recent World Bank report that described Nigeria’s restructuring as a “world reference material,” and stressed that sustained collaboration between federal, state, and local governments is crucial to maintaining investor confidence and achieving the $1 trillion economy target.