Remittance inflows hit seven-year high of $2.85bn as naira firms 7.29%

Nigeria received $2.85 billion in remittance inflows through international money transfer operators (IMTOs) in the first half of 2026, the highest first-half total in seven years, according to Central Bank of Nigeria (CBN) data. The naira also held steady, gaining 7.29 percent year-to-date to close at N1,333.65 per dollar on Tuesday at the Nigerian Foreign Exchange Market (NFEM), against N1,430.85 at the start of January 2026.

On a day-on-day basis, the local currency was broadly flat, quoted at N1,333.65/$ on Tuesday compared with N1,333.72/$ on Monday. In the parallel market, the naira appreciated to N1,372 per dollar on Wednesday, up 8.53 percent year-to-date from N1,500/$ at the beginning of the year. It traded flat against Tuesday's N1,373/$.

Remittances up 38.16% in six months

The CBN's IMTO inflow data showed the $2.85 billion recorded between January and June 2026 was 38.16 percent higher than the $2.07 billion posted in the same period of 2025. That works out to roughly $788.5 million in additional inflows.

The figure reverses the 11.78 percent decline recorded in the first half of 2025, when inflows fell from $2.34 billion in January to June 2024 to $2.07 billion.

June recorded the strongest monthly inflow in the period at $580.16 million, followed by April with $513.81 million and January with $507.91 million. The first quarter pulled in about $1.29 billion, while the second quarter generated roughly $1.57 billion, about 55 percent of the six-month total.

External reserves climb to 18-year high

Nigeria's external reserves rose to $55.12 billion as of October 19, 2026, their highest level in 18 years, CBN data showed. That is a 28.69 percent increase from the $42.83 billion recorded on October 20, 2025.

The stronger buffer supports confidence in the country's ability to meet foreign currency obligations and absorb external shocks. Still, reserve accumulation alone does not guarantee exchange rate stability, which also depends on foreign exchange demand, capital flows, oil receipts and monetary policy.

Foreign exchange market activity was mixed. Interbank turnover rose 49.59 percent to $60.72 million from $40.59 million on Monday, with deals up 18.64 percent from 59 to 70. At the NFEM window, deals rose 2.17 percent from 230 to 235, but turnover fell 2.75 percent to $322.21 million from $331.31 million.

Cardoso ties stability to longer naira lending

CBN Governor Olayemi Cardoso said sustained exchange rate stability could deepen Nigeria's capital markets by cutting currency risk for investors, lenders and businesses.

"The prospects for mobilising long-term naira-denominated capital have increased significantly as a result of the stability we have achieved in the markets," Cardoso said, adding that "the risks previously associated with exchange-rate volatility and sharp currency depreciation have receded considerably."

He said a more predictable currency makes it easier to build financial products and investment structures that support long-term financing. For banks and investors, the benefit is greater predictability when assessing borrowers' cash flows, funding costs and repayment capacity. Interest rates, inflation, credit risk and borrowers' finances still weigh on lending decisions.

For Nigerian businesses and consumers, the combination of higher formal remittance inflows and stronger reserves eases pressure on the naira, though the gains depend on inflows holding up and on how competing foreign exchange demand is managed.