Net foreign portfolio inflows increase to $6.31bn between January, August

The Central Bank of Nigeria CBN has said that net foreign portfolio inflows into the country between January and August this year increased to $6.31 billion.

Deputy Governor, Corporate Services, CBN, Dr. Muhammad Sani Abdullahi, who disclosed this at a two day seminar organised by CBN for Finance Correspondent Association of Nigeria (FICAN) said the sources of foreign exchange have changed, adding that remittances through International Money Transfer Operators reached $950 million in the month of July.

Abdullahi said of the $10.82 billion in total inflows recorded in July 2026, $7.33 billion, or nearly 68 per cent, came from autonomous sources.

He said portfolio flows can reverse, but the broader improvement in supply has reduced the market’s reliance on direct CBN provision.

Admitting that the nation’s external buffers are stronger, the Deputy Governor said gross reserves stood at $55.60 billion on 11 September 2026, while the end-August stock provided 11.3 months of import cover.

The DG, however, said the foreign exchange market in the last three years is 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.

He said the narrow gap gives businesses a more reliable basis for pricing and planning.

He said that 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.

He said stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.

Huge capital in the banks, according to him, provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation.

Speaking further he said: “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 said resilience therefore requires institutions to anticipate emerging risks, absorb shocks, adapt and recover, stating that the lessons of past financial crises underline the value of adequate capital, but also the need to prepare for risks that may take unfamiliar forms.

He said: “raising capital, however, is a starting point but boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects while the management teams must demonstrate integrity, accountability and transparency, strengthen internal controls and guard against excessive risk-taking and their decisions must protect the interests of depositors, investors and other stakeholders.”

Expressing the need for banks to invest more on Fintech, he said, “as more financial services move to digital channels, banks must invest continuously in cybersecurity, data protection, disaster recovery and business continuity,” added.

He said innovation brings opportunities, but public trust depends on customers being able to transact securely and access their funds reliably, including when systems come under pressure.

On the part of the regulator, he said, supervisory approach will continue to emphasise risk-based supervision, macroprudential surveillance and enhanced stress testing.