By Obinna Uballa
Nigeria’s external sector received a major boost in the second quarter of 2024, with the current account balance surging by 85 per cent to $5.28bn. The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, who disclosed this at the 60th Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos on Friday, said the development has helped rebuild the country’s foreign reserves and improve economic resilience.
Cardoso noted that reserves climbed to $46.7bn by mid-November, the highest level in nearly seven years, giving the country more than 10 months of forward import cover.
“Our FX reserves are being rebuilt organically – not through borrowing,” he said. “We are seeing stronger non-oil exports, improved market functioning and robust capital inflows. These are the fundamentals driving our renewed buffers.”
The improvement in external conditions comes as the CBN presses ahead with a sweeping recapitalisation of the banking sector. Cardoso confirmed that 27 banks have so far raised fresh capital through public offers and rights issues. Out of these, 16 institutions have already met or exceeded the new capital thresholds announced in March.
“With just four months to go, the recapitalisation exercise is firmly on track,” he told bankers. “Our stress-testing this year shows that the sector remains fundamentally strong, with financial soundness indicators well within prudential benchmarks.”
Under the recapitalisation plan, commercial banks with international authorisation are expected to raise their capital base to N500bn, while national and regional banks are required to hit N200bn and N50bn respectively. Non-interest banks must raise between N10bn and N20bn depending on licence type. The deadline is March 31, 2026.
Cardoso pointed to major reforms undertaken this year – including a unified, market-driven exchange rate system and enhanced forex surveillance tools – as key in stabilising the economy and insulating it from global shocks. With oil now contributing a smaller share of GDP and fiscal revenues, he said Nigeria is better positioned to absorb fluctuations in oil prices.
“From volatile energy markets to shifting credit-rating sentiments, our reforms have strengthened Nigeria’s ability to withstand external shocks,” he said, stressing that monetary policy remains firmly anchored on price stability.
The CBN governor also drew attention to the role of micro, small and medium enterprises, saying MSME-focused lending grew by more than 14 per cent this year, with digital credit platforms reaching over 1.2 million small businesses. He said the Bank is redesigning its credit-risk framework to ensure stronger governance and accountability in lending.
Earlier, the President of the CIBN, Pius Olanrewaju, applauded the banking industry for its resilience and continued contribution to the economy, noting that many banks have already met recapitalisation requirements ahead of schedule. He described Nigeria’s removal from the FATF grey list as a “major confidence boost” for international transactions and investment flows.
Also speaking, the Chairman of the Body of Bank CEOs and GMD/CEO of UBA, Oliver Alawuba, emphasised the need for banks to channel more credit to youth entrepreneurship, SMEs, women-owned businesses and the creative sector. He reminded customers that bank credit “is not a gift or a grant” but a trust designed to stimulate economic growth.
Alawuba further assured Nigerians that banks are prepared for the festive season, with arrangements in place to ensure cash availability at ATMs and branches, and to strengthen cybersecurity amid increasing digital fraud attempts.
Cardoso rounded off by calling for stronger collaboration across the public and private sectors to address the country’s rising insecurity, which he described as a critical obstacle to sustained economic progress.
