The Central Bank of Nigeria (CBN) has expressed optimism of more foreign portfolio inflows after the country raked in $6.31 billion net foreign portfolio inflows between January and August this year .
The apex bank said this development signpost serious investor confidence and a dramatic shift in how the nation sources its foreign exchange.
The Central Bank of Nigeria (CBN) Deputy Governor for Corporate Services, Dr. Muhammad Sani Abdullahi, who disclosed this at the 38th seminar of Finance Correpondents and Business Editors in Abuja said the country was successfully diversifying its forex pipelines with a massive chunk of this momentum being driven by diaspora remittances through International Money Transfer Operators, which ballooned to $950 million in just one month,July alone.
Abdullahi said the numbers highlight a growing reliance on private and independent markets over the Federal Government funding, noting that out of $10.82 billion in total inflows recorded in July 2026, about $7.33 billion, representing nearly 68 per cent, flooded in from autonomous sources.
While pointing out that portfolio investments remain volatile and can quickly reverse, he however said the focus remains on the broader supply surge which is a major win, especially as the influx has successfully cushioned the market, and aggressively reduced its reliance on direct forex interventions from the CBN.
The Deputy Governor who noted that the external reserves was stronger now, said gross reserves stood at $55.60 billion on 11 September 2026, while the end-August stock provided 11.3 months of import cover.
He however,stated that the foreign exchange market in the last three year was showing greater stability, as the average gap between official and parallel rates fell from 68.2 per cent in January to May 2023 to less than 2 per cent, stressing that the narrower gap gives businesses a more reliable basis for pricing and planning.
According to him, Nigeria’s aspiration to build a one-trillion-dollar economy by 2030 requires banks capable of mobilising and allocating capital on a much larger scale, particularly given that stronger capital buffers would enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
Furthermore, Abdullahi stated that huge capital in the banks provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation.
“The environment in which these banks operate is increasingly interconnected. Geopolitical uncertainty, climate-related risks, cyber threats and rapid technological change can transmit shocks across borders through financial, trade and technology channels, affecting capital flows, exchange rates and external buffers”, he explained
On building institutional resilience, he said financial institutions must look beyond traditional capital buffers to survive modern economic disruptions, adding that true institutional resilience requires banks to proactively anticipate emerging risks, absorb sudden shocks, and rapidly recover, proving that lessons from past financial crises demand preparation for entirely unfamiliar threats.
The Deputy Governor, who also spoke to corporate governance and risk responsibility, stated that while raising capital serves as a critical baseline, bank boards and management teams must implement stringent internal controls and recognize risks early.
He maintained that decisions must firmly protect depositors and investors by prioritizing lending to viable projects, curbing excessive risk-taking, and upholding strict executive integrity and transparency.
Also focusing on cybersecurity and digital evolution, Abdullahi said the rapid migration of financial services to digital channels demands heavy and continuous fintech investment, adding that efforts at tackling growing digital vulnerabilities should see the banks aggressively bolstering their cybersecurity infrastructure, data protection frameworks, disaster recovery protocols, and business continuity plans.
He warned that while innovation drives growth, and creates opportunities, public trust hinges on secure transactions and reliable access to funds during system crises.
Concluding, Abdullahi warned that regulators will have no choice but to tighten the screws, ramping up risk-based supervision, intensifying market surveillance, and forcing institutions through grueling stress tests.
