By Muhammad Mamman
Nigeria’s foreign-exchange market is now turning over about $500 million daily without the direct participation of the Central Bank of Nigeria (CBN), according to CBN Governor Olayemi Cardoso, who says the surge marks a turning point in efforts to stabilise the naira and rebuild investor confidence.
Speaking on Tuesday at a financial sector forum in Abuja, Cardoso said the current level of activity shows that recent reforms—especially moves to allow market-driven price discovery—are beginning to deliver results.
“We are witnessing a more vibrant, transparent and self-sustaining FX market,” he said. “Daily turnover has risen to around half a billion dollars without the CBN having to intervene. That tells you liquidity is returning, and confidence is improving.”
The CBN has stepped back from routine interventions since mid-2024, shifting from heavy-handed control to a more market-determined exchange rate regime. The shift followed months of volatility that saw the naira plunge to record lows.
Cardoso argued that the increased turnover reflects growing participation by foreign portfolio investors, improved clarity in FX rules, and the unification of multiple exchange windows that previously distorted pricing.
Economists say the rise in liquidity is encouraging but warn that sustained stability will depend on broader economic fundamentals—including oil production levels, fiscal discipline and continued transparency.
Despite recent gains, the naira remains under pressure, and businesses continue to grapple with high import costs and uneven FX availability from commercial banks.
Still, Cardoso maintained that the momentum is positive. “We are not where we want to be yet, but the direction is right,” he said. “Our goal is a deep, efficient, and resilient FX market that supports sustainable economic growth.”
