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Nigeria’s Foreign Exchange Market Finds New Stability: Cardoso’s Reforms

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CBN

Nigeria’s Foreign Exchange Market Finds New Stability: Cardoso’s Reforms

Nigeria’s foreign exchange market finds new stability: Cardoso’s reforms. Since assuming office, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has made significant strides in stabilising the foreign exchange market, rebuilding foreign reserves, and taming inflation— while restoring confidence in Nigeria’s monetary policy.

These developments mark a clear departure from the chaotic exchange rate environment that previously defined Nigeria’s financial sector.

‎‎Before Cardoso’s reforms, Nigeria operated a fragmented and opaque foreign exchange regime with multiple FX windows, ranging from the official I&E window to various interventions and retail channels.
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‎This system allowed for wide discrepancies in pricing, often creating arbitrage opportunities for insiders while excluding legitimate businesses and ordinary Nigerians from fair access to dollars. Also,the gap between the official and parallel market rates frequently exceeded 60%, fueling black market speculation and discouraging foreign investment.
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‎One central achievement of Cardoso’s leadership of the Central Bank has been the unification of the foreign exchange windows and the implementation of a transparent “willing buyer, willing seller” digital platform. This reform, which replaced the multiple FX windows, has allowed for efficient price discovery and market-led exchange rate determination.
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‎As a result, the parallel market premium, which used to exceed 60%, has narrowed to as little as ₦1. The official exchange rate has stabilised at around ₦1,531/$1, nearly matching the rate in the parallel market. This significant compression has essentially eliminated arbitrage opportunities and is gradually rendering black-market currency trading obsolete.
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‎Cardoso himself acknowledged the systemic instability he inherited and praised the CBN’s new trajectory, saying, “We inherited a crisis of confidence but chose a different path. We’re not turning back.” His remarks reflect a broader strategy aimed at removing opacity from the financial system, restoring trust, and encouraging formal sector engagement.
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‎The FX market now operates with more transparency, and banks no longer redirect customers to street-level currency dealers—one of the most visible indicators of the system’s past dysfunction.
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‎Equally notable is the progress in rebuilding Nigeria’s foreign reserves. With improved oil receipts, increased investor confidence, and a wave of foreign portfolio inflows, the country’s reserves have rebounded from below $35 billion to over $40 billion by mid-July 2025. In June alone, Nigeria saw foreign portfolio inflows exceed $2.7 billion, a 315% increase compared to April.
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‎These flows have contributed to a healthier balance of payments position, provided roughly 9 to 10 months of import cover, and significantly reduced pressure on the Naira. According to Cardoso, these trends reflect Nigeria’s “shift from vulnerability toward strength,” signalling to investors that the country is regaining its financial footing.
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‎Meanwhile, the inflation picture, although still challenging, shows signs of consistent improvement. Headline inflation has fallen from a high of 34–35% in late 2024 to 22.22% as of June 2025. This progress is the result of tighter monetary policy anchored by a steady Monetary Policy Rate of 27.5% and better FX market liquidity.
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‎While food and core inflation remain elevated, Cardoso’s CBN has reiterated its commitment to price stability and medium-term inflation targeting. “Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” he stated recently.
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‎Comparatively, the macroeconomic landscape has shifted significantly in less than a year. The exchange rate gap has virtually disappeared, reserves are growing, inflation is moderating, and investor confidence is returning.
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‎Cardoso’s reforms mirror the kind of bold policy stance seen during President Bola Tinubu’s removal of fuel subsidy, a decision that collapsed the black market for petrol overnight. Similarly, as market transparency and monetary discipline take root, the demand for informal FX services is drying up naturally.

CBN

CBN

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‎There is however reason for cautious optimism. Cardoso has shown that consistent, data-driven, and transparent policy can reset Nigeria’s monetary framework. FX arbitrage is fading, banks are regaining credibility, and the country’s reserves now provide a buffer against future shocks.
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‎If sustained, these reforms could anchor long-term macroeconomic stability and real-sector growth. The groundwork has been laid; the challenge now is continuity and political will.
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‎In summary, Cardoso is winning the early rounds of Nigeria’s economic recalibration. He is not merely managing a crisis, he is engineering a recovery.

And as the gap between official policy and economic outcomes narrows, Nigerians may finally begin to feel the relief that only true macroeconomic stability can offer.
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Oyalowo, a development economist, can be reached on X (formerly Twitter) @AyoOyalowo

Crime

Navy Dismantles Illegal Refining Capacity, Destroys Site With 3 Storage Tanks in Rivers

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Troops Destroy 56 Illegal Refining Sites

Navy Dismantles Illegal Refining Capacity, Destroys Site With 3 Storage Tanks in Rivers

The Nigerian Navy, through FOB BONNY, has dismantled an illegal refining site discovered in Promise Land Community along Nanabie Creek, Bonny Local Government Area of Rivers State, further denying criminal operators the infrastructure required to process stolen crude oil.
Eereporter.com

The site was discovered on 30 September 2026 following credible intelligence and comprised one large cooking pot and 3 large storage tanks intended for illegal refining activities. On 2 October 2026, the Commanding Officer, FOB BONNY, Captain SMC Umeh, led a team to the location, where the illegal refining site and associated equipment were destroyed in accordance with established regulations.

The intervention represents a further disruption of illegal refining capacity within the Bonny area, particularly by removing infrastructure that could be used to process and store stolen crude oil. It also follows recent operations by FOB BONNY under Operation DELTA SENTINEL that uncovered substantial volumes of suspected stolen crude oil and associated illegal refining infrastructure within its Area of Operations

Troops Destroy 56 Illegal Refining Sites

Oil

The Nigerian Navy has continued to strengthen surveillance and monitoring across the area to prevent the establishment or reactivation of illegal refining sites and deny criminal operators the infrastructure required to sustain crude oil theft and related activities.

ABIODUN FOLORUNSHO

Navy Captain

Director Naval Information

Nigerian Navy
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Economy

NNPC Ltd Offers N66 Fuel Discount Throughout the Nation

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NNPC Ltd Offers N66 Fuel Discount Throughout the Nation

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has unveiled a nationwide ₦66 fuel discount promotion for customers using the NNPC Fuel App.
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In a post obtained from its X handle on Friday, the promotion, which runs from October 1 to 7, is being held across NNPC stations nationwide as part of activities marking the period.

“The ₦66 Discount Promo is ongoing & the excitement is already happening across our stations nationwide!

“All over Nigeria, our customers are getting in on the action & there’s still time for you to benefit!

The promo runs from 1–7 October on the NNPC Fuel App,” the post read.

NNPC said customers across the country have already begun participating in the promotion, with highlights from the first day showing activities at several stations.

“Keep fueling, keep transacting and keep your eyes on our pages,” the post read.

NNPC

NNPC

NNPC also shared moments from the first day of the promotion and said more pictures and activities from stations across the country would be released.

The company urged customers not to miss the opportunity to participate before the promotion ends on October 7.

The ₦66 discount offer is available through the NNPC Fuel App during the stated promotional period.
Eereporter.com

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Economy

President Tinubu Tells EFCC: You Have Justified my Confidence in You

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EFCC Arraigns Gidado Ibrahim

President Tinubu Tells EFCC: You Have Justified my Confidence in You

President Bola Ahmed Tinubu has applauded the efforts and performance of the Economic and Financial Crimes Commission, EFCC, in tackling economic and financial crimes and other acts of corruption in the country, stressing that it has justified the confidence reposed on it.
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He gave this commendation on Friday, October 2, 2026 in Awka, Anambra State at the commissioning of a new Zonal Directorate of the EFCC. The President pointed out that there are evidential proofs of the success of the Commission in convictions, recoveries and other landmark achievements

Represented by Honourable Tajudeen Abbas, Speaker, House of Representatives, Tinubu noted that “supporting the EFCC is not particularly difficult. The agency has consistently demonstrated that the confidence reposed on it is well founded. Without mincing words, the evidential proof of the EFCC’s success speaks loudly in convictions secured, assets and properties recovered”

He affirmed that the strides of the Commission are in tandem with the Renewed Hope Agenda of his administration.

“When we came in three years ago, I highlighted nine major focal areas of my administration. Two of which are reforming the economy for sustained and inclusive growth and promotion of good governance. The anti-graft agency compliments this agenda as they are focused on accountability and transparency and appropriate deployment of resources”, he said.

At the commissioning, the Executive Chairman of the EFCC, Mr. Ola Olukoyede restated the commitment of the Commission to preventive frameworks in tackling economic and financial crimes and other acts of corruption in the country.

According to him, the Commission will continue its focus on making corrupt practices difficult by blocking avenues through which they may happen.

“This new Directorate will not only enforce the law professionally and courageously, it will be high on corruption prevention. It will engage government institutions, businesses, financial institutions, professional bodies, schools, markets, civil society organisations, traditional institutions, religious bodies and communities. It will educate stakeholders, build relationships and mobilise the people to own the fight against all forms of corrupt practices in the zone”, he said

He assured Nigerians that the EFCC would not relent in the pursuit of its mandate, recalling the achievements of the Commission in the last 34 months and describing them as impressive progress.

“The pursuit of our mandate has been our dominant engagement and in the past few years, we have made impressive progress. Between October 2023 and July 2026, the Commission received 49, 673 petitions, investigated 39, 615 cases, filed 14, 476 cases in court and secured 10, 872 convictions. This gives a conviction-to-filing ratio of 75.1 percent. In the first half of 2026 alone, we recorded 1, 370 convictions from 1, 889 filings. The Commission also recorded recoveries of N1, 233, 612, 040, 411. 11, $684, 478, 457. 32, £373, 905. 78, €9, 343, 803. 66 inn addition to recoveries in other currencies”, he said.

He noted that at the institutional level, the Commission has made radical reforms that have been yielding optimal results as there are consequential improvements in the agency’s processes and procedures, which partly explains the impacts the EFCC has made and will continue to make in all the matrices of law enforcement.

“Reforms that have strengthened the Commission during the period include new guidelines on arrest and bail, a review of sting operations, the establishment of the Department of Fraud Risk Assessment and Control, the Security Department, the Immigration and Visa Section and the Cybercrime Rapid Response Centre”, he said.

While charging Ndi Anambra on whistleblowing, the anti-graft czar said that the Commission has established channels through which members of the public can submit petitions and provide information. He noted that the Commission’s Eagle Eye App allows citizens to provide details of suspected wrongdoing and makes the provision of an informant’s personal details optional. “However, whistleblowing must be responsible and based on facts. It must not become an instrument for settling scores”, he said.

EFCC Arraigns Gidado Ibrahim

EFCC

He thereafter said that Anambra and Imo States deserve effective and responsive institutional presence as they are renowned for enterprise, innovation, commerce and an extraordinary culture of industry, adding that these legitimate activities must be protected from fraud, cybercrime, money laundering, investment fraud, diversion of public resources and other forms of economic and financial crimes. “Therefore, our coming to Awka is beyond geographical expansion. It is about taking the mandate of the EFCC closer to the people and closer to the economic activities we are meant to protect”, he said.

In their remarks, His Excellencies, Professor Chukwuma Soludo, Governor of Anambra State and Senator Hope Uzodinma, Governor of Imo State said that they were pleased with the activities and management of the EFCC under the leadership of Olukoyede. They pledged their support to the Commission as it opened a new Zonal Directorate in their domain.

The commissioning of the new Directorate witnessed massive turn out of distinguished Nigerians, including members of the National Assembly, civil society organisations, community leaders, students, media among others.
Eereporter.com

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