The Central Bank of Nigeria (CBN) projects a $20 billion current account turnaround in the medium term, driven by rising non-oil exports, improved foreign exchange liquidity, and stronger external reserves.
The projection, presented during the Nigeria Investors Forum in Washington D.C., marks a significant turnaround from years of consistent current-account deficits and reflects growing confidence in the country’s external position.
Officials said the improved balance would strengthen Nigeria’s macroeconomic stability and enhance its credit outlook ahead of renewed engagements with international investors.
According to the Deputy Governor for Economic Policy, Mohammed Sadi Abdullahi, reforms implemented over the past two years have improved both the volume and quality of FX inflows, with net flows doubling between January 2023 and July 2025.
He said average monthly turnover in the foreign exchange market rose to $8.6 billion, compared to $5.5 billion in 2024, as liquidity conditions and price transparency improved.
Abdullahi added that capital inflows, which had fallen sharply in previous years, have begun to recover, supported by greater policy alignment and investor engagement.
He said the central bank has cleared a substantial portion of outstanding FX backlogs and strengthened reserves through improved management of export proceeds and remittances.
As of October 10, Nigeria’s external reserves stood at $43.4 billion, the highest in five years and sufficient to cover approximately 11 months of imports.
The reserve build-up, according to the CBN, was achieved through consistent inflow management, coordinated fiscal-monetary policy, and the repatriation of about $13 billion to local and international banks, which restored confidence in the financial system.
Abdullahi explained that the CBN’s ongoing objective is to consolidate these gains by sustaining policy discipline, expanding the export base, and deepening the non-oil sector’s contribution to the balance of payments.
“Our policy direction is anchored on improving the flow and stability of foreign exchange into the economy,” he said, adding that the apex bank is prioritising transparent market operations and continued reforms to encourage long-term investment.
CBN Governor Olayemi Cardoso said coordination between the central bank and the Ministry of Finance remains critical to maintaining policy credibility.
He emphasised that the government’s macroeconomic strategy is focused on rebuilding investor trust, restoring fiscal discipline, and strengthening Nigeria’s fundamentals through a combination of monetary restraint and structural reform.
Cardoso assured investors that monetary reforms—including the unified exchange-rate framework, clearing of FX obligations, and improved market liquidity—are already yielding measurable results in stability and investor participation.
He said both institutions are aligned in ensuring that economic policy supports sustainable growth and external resilience.
At the same forum, the Special Adviser to the President on Finance and the Economy, Sanyade Okoli, reaffirmed the administration’s broader economic agenda to raise GDP growth to 7 percent by 2027–2028.
She highlighted ongoing diversification efforts that have reduced oil’s share of national output to 4 percent of GDP, down from 8 percent in 2021, and cut its contribution to export earnings to just over 57 percent in the first half of 2025.
Okoli added that the government is mobilising new investments in power, transport, and digital infrastructure to sustain the momentum.
Partnerships with multilateral lenders such as the World Bank and the African Development Bank are expected to mobilise $32 billion for energy expansion, including new transmission and rural-electrification projects.
Economists say the CBN’s $20 billion current-account projection demonstrates growing macroeconomic confidence following recent foreign exchange reforms and capital-market realignment. They caution, however, that maintaining the trajectory will require continued coordination between fiscal and monetary authorities, stable crude output, and sustained export diversification.