The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has dismissed claims that the apex bank is aggressively intervening in the foreign exchange market to defend the naira, stating that recent interventions account for only about 1.2 to 1.3 per cent of total market turnover.
Cardoso made the clarification on Wednesday during a press briefing in Abuja after the conclusion of the 305th meeting of the Monetary Policy Committee.
Responding to questions on whether the CBN had been intervening heavily in the FX market amid pressure on external reserves, Cardoso said the allegations were inaccurate.
“The answer is that it is not true,” he stated.
According to the CBN governor, Nigeria’s foreign exchange market has undergone significant structural changes since the current leadership assumed office.
He explained that daily FX turnover has increased from about $100m to approximately $550m, with occasional spikes reaching as high as $1bn in a single day.
“At times, it has spiked as high as $1 billion on a daily basis. Not every day, but it has spiked. Now, the goal is for it to get to that $1 billion every day,” Cardoso said.
He noted that the reforms implemented by the apex bank had improved market liquidity and reduced the need for routine intervention.
“Where you have already a deepening foreign exchange market where liquidity rules the day, there is very little need for you to intervene. The market operates all on its own,” he stated.
Cardoso added that the CBN’s intervention level remained minimal compared to total market turnover.
“Relative to turnover in 2025, the CBN intervened in about 1.2, 1.3 per cent. It was so small relative to turnover,” he explained.
The governor also said the FX market had become more transparent and increasingly driven by a willing-buyer, willing-seller framework.
“We have gotten to that stage where the market itself, due to the reforms that have been taking place, has been able to find its own level through willing buyer, willing seller, proper behaviour with respect to market conduct, transparency, with everybody feeling that there is more or less symmetry in terms of access to information,” he said.
Cardoso linked the improved market structure to recent reforms introduced by the apex bank, including the FX Code, electronic trading platform, and revised foreign exchange manual.
According to him, the new FX manual, scheduled to take effect on June 1, will improve consistency, transparency, and ease of participation in the official market.
He stated that the revised framework would encourage exporters to repatriate their foreign exchange earnings through official channels.
“It is going to make it easier for those who, in the past, used to export and were reluctant or diverted their funds elsewhere. It is going to make it a lot easier and more encouraging for them to bring their FX back into the system,” Cardoso said.
The CBN governor also addressed concerns over recent fluctuations in Nigeria’s external reserves, advising the public not to overinterpret daily changes.
According to him, reserve movements are influenced by routine government obligations and debt repayments.
“There may be need to meet the requirements of various arms of government or loans, outstanding obligations due. They have to be paid. And so they are paid,” he stated.
“But believe me, as they are paid, so does new money come in,” he added.
Cardoso disclosed that Nigeria’s reserves had recovered close to pre-crisis levels recorded before recent geopolitical tensions involving Iran.
“We are literally back in numbers to where we were prior to the Iran war. We are literally back there again. And I believe that it will continue to be improving in that particular direction,” he said.
He maintained that exchange rate stability remained central to the apex bank’s strategy for controlling inflation and minimising the impact of external price shocks on the domestic economy.
The CBN governor also disclosed that the Monetary Policy Committee retained the Monetary Policy Rate at 26.5 per cent following the conclusion of its 305th meeting.
All other key monetary policy parameters were also left unchanged as policymakers continue to monitor inflationary trends and broader macroeconomic developments.
