Goddy Egene writes on how reforms by the Central Bank of Nigeria is helping to boost foreign exchange inflow into the Nigerian economy
The Central Bank of Nigeria (CBN’s) decision to clear over $7 billion unsettled foreign exchange (FX) backlogs has raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion. Nearly three years after the backlog clearance, FX inflows into the economy rose significantly, hitting $112 billion in 2025. Market analysts said rising autonomous inflows, including diaspora remittances, foreign portfolio investment, non-oil export proceeds show positive effect of the reforms in attracting foreign capital to the domestic economy.
The rising investors’ confidence in the economy started with a systematic planning and commitment to due process through policies initiated by a combination of the CBN and other fiscal authorities.
The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, CBN Governor Olayemi Cardoso said. The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, but he believed it was the right thing to do, and gave investors his word.
