The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that Nigeria’s gross external reserves increased to $52.73 billion as of July 9, 2026, from $48.88 billion recorded in January, representing a 7.9 per cent rise.

Cardoso made the disclosure on Wednesday while appearing before the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East), to brief lawmakers on the state of the economy and developments in the banking sector.

He attributed the growth in the country’s external reserves to stronger reserve accumulation and renewed confidence in the foreign exchange market, describing both as indicators of improving economic fundamentals.

“Gross external reserves increased by 7.9 per cent to $52.73 billion as of July 9, 2026, from $48.88 billion in January 2026, while net external reserves rose by 900 per cent to over $40 billion, compared with $3.99 billion in 2023,” Cardoso said.

The CBN governor expressed optimism about Nigeria’s economic prospects in the second half of 2026 despite persistent global uncertainties. He said inflation is expected to continue its gradual moderation, supported by tight monetary policy, improved policy coordination, greater exchange rate stability and easing supply-side pressures.

Cardoso also highlighted the Banking Sector Recapitalisation Programme as one of the apex bank’s most significant achievements during the review period, revealing that it mobilised N4.65 trillion in fresh capital in March 2026.

According to him, the exercise ranks among the most successful banking sector capital-raising initiatives in Nigeria’s history.

“Notably, 72.55 per cent of the capital raised originated from domestic investors, while 27.45 per cent came from foreign investors, reflecting both strong domestic participation and growing international confidence in Nigeria’s economic prospects,” he said.

He further disclosed that 33 banks had met the revised minimum capital requirements and recorded improvements in key financial soundness indicators. He added that the CBN is engaging the few institutions yet to comply in a manner that safeguards financial stability, protects depositors and ensures full regulatory compliance.

On inflation, Cardoso said the rate declined to 15.06 per cent in February 2026, prompting the Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate (MPR) from 27 per cent to 26.5 per cent. However, inflation edged up to 15.93 per cent in May following external shocks.

Earlier, Chairman of the committee, Senator Adetokunbo Abiru, commended the CBN for maintaining exchange rate stability, improving transparency in the foreign exchange market and successfully implementing the banking recapitalisation programme.

He, however, stressed that stronger banks must translate their larger capital base into increased lending to productive sectors of the economy.

“Recapitalisation should not become an end in itself. Ultimately, the true measure of a stronger banking system lies not merely in larger balance sheets but in its capacity to mobilise savings efficiently and channel affordable credit to productive sectors of the economy,” Abiru said.

He urged banks to prioritise lending to agriculture, manufacturing, infrastructure, technology and small and medium-sized enterprises (SMEs), while expressing concern over reports indicating a moderation in private sector credit despite the unprecedented capital raised by the banking industry.

At the conclusion of Cardoso’s presentation, Abiru announced that the committee would proceed into a closed-door session with the CBN governor and his management team for further discussions on the issues raised.