Nigeria’s foreign reserves have reached an 18-year peak, prompting the Central Bank to ease monetary policy to stimulate business growth.
Nigeria’s gross external reserves crossed $55 billion on 18 September, 2026, reaching their highest level in 18 years.
The Director of Stakeholder Engagement and Institutional Relations at the Central Bank of Nigeria,(CBN) Mrs Hakama Sidi-Ali, made the figure known on Tuesday in Abuja.
She pointed to rising foreign exchange inflows from remittances, investments, and higher public participation in the formal financial system as reasons for the reserve growth.
She spoke during the CBN Special Day at the 21st Abuja International Trade Fair. Sidi-Ali stated that unifying the foreign exchange market reduced market distortions, built investor confidence, and improved overall market stability.
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To support real business activities while keeping single-digit inflation in focus, the central bank lowered its Monetary Policy Rate from 26.5 per cent to 23 per cent.
“The bank recently reset the Monetary Policy Rate from 26.5 per cent to 23 per cent and recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, to support productive activities without losing focus on bringing inflation down to a single digit from its current position of 15.39 per cent,” Sidi-Ali said.
The 350-basis-point interest rate drop marks a turn to monetary easing following a long stretch of tight policy meant to control price increases and calm foreign currency markets.
Business growth and financial sector reforms
Sidi-Ali stated that the central bank partnered with fiscal authorities on reforms to protect economic stability, gain back investor trust, and support lasting growth.
“Resilient trade thrives in an environment of macroeconomic stability. Businesses plan and invest with greater confidence when inflation is moderated, exchange rates are relatively stable, and the financial system is sound,” she said.
The director named two ongoing programs, the Payments System Vision 2028 and the banking sector recapitalisation exercise, as major actions aimed at solidifying the financial sector.
She pressed commercial banks to direct funding toward key industries, while advising corporate entities to alter their operations.
“Financial institutions must continue to support productive sectors of the economy. Businesses must embrace innovation, improve governance, and explore new markets,” Sidi-Ali said.
Private sector demands cheaper credit
The President of the Abuja Chamber of Commerce and Industry, Emeka Obegolu, spoke at the trade fair event and asked the central bank to open up cheaper loans for Micro, Small and Medium Enterprises, known as MSMEs.
Obegolu noted that heavy running costs and tight capital access remain big hurdles for firms. He asked the CBN, commercial banks, and the organised private sector to work together so small businesses can create jobs.
“We encourage the CBN to continue strengthening initiatives that improve MSMEs’ access to affordable and sustainable financing, deepen financial inclusion, promote digital financial services and enhance the capacity of small businesses to access formal credit,” Obegolu said.
He recommended credit guarantees, targeted funding, and new funding channels to resolve business difficulties. Obegolu urged the central bank to funnel more credit into farming, factory production, commerce, technology, and export trade.
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