Nigeria has recorded a significant rise in foreign capital inflows this year, reaching $20.98 billion in the first 10 months of 2025, according to Central Bank Governor Olayemi Cardoso.
Speaking at the Chartered Institute of Bankers of Nigeria’s 60th annual dinner in Lagos, Mr Cardoso said the figure represents a 70% increase compared with total inflows recorded in 2024 and a 428% surge from 2023.
He described the boost as “a clear resurgence in investor confidence”, crediting recent reforms introduced by the Central Bank.
Mr Cardoso highlighted improvements in Nigeria’s foreign exchange (FX) system over the past year, including the maintenance of a unified exchange rate.
He said a major turning point was the clearance of a large FX backlog that had discouraged investors and businesses.
“Today, the once-crippling multi-billion-dollar FX backlog has been fully cleared, restoring credibility and giving businesses confidence to plan,” he said.
The governor also pointed to the introduction of an FX code of conduct for authorised dealers, aimed at improving transparency and discipline in the market. In addition, the deployment of a new electronic FX management system has, he said, enhanced real-time monitoring and price discovery.
According to Mr Cardoso, the reforms have helped stabilise the naira, with the gap between the official and parallel market rates now below 2%, compared with more than 60% previously.
He continued that Nigeria’s external sector strengthened in 2025, with the current account balance rising sharply from $2.85bn in the first quarter of 2024 to $5.28bn in the second quarter, an 85% increase.
Nigeria’s foreign reserves also improved, reaching $46.7bn by mid-November, the highest level in nearly seven years. The reserves now provide more than 10 months of import cover.
“Our FX reserves are being rebuilt organically, not by borrowing,” the governor said, noting improved non-oil exports, stronger market functioning, and rising foreign investment as key drivers.
While oil production has only seen modest improvement, averaging between 1.45 and 1.52 million barrels per day, Mr Cardoso described the performance of non-oil exports as “encouraging”. He said the sector grew by more than 18% year-on-year, boosted by market reforms and exchange-rate flexibility.
“Diaspora remittances also increased by about 12% in 2025. Wexpects further growth as more Nigerians abroad adopt the recently launched Non-Resident Bank Verification Number (BVN) system,” the governor added.
The CBN plans to introduce a revised FX manual aimed at broadening market participation and tightening documentation and oversight. Mr Cardoso said the bank remains committed to a flexible exchange-rate regime that reduces volatility while allowing the naira to absorb external shocks.