BY CHINYERE OBIORA – The Central Bank of Nigeria (CBN) is upbeat that net foreign portfolio inflows into the country between January and August this year increased to $6.31 billion, signaling a massive surge in investor confidence and a dramatic shift in how the nation sources its foreign exchange.
He said though portfolio investments remain volatile and can quickly reverse, the focus stays on the broader supply surge which is a major win, especially as the influx has successfully cushioned the market, and aggressively reduced its reliance on direct forex interventions from the CBN.
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.
However, he said the foreign exchange market in the last three year 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, stressing that the narrower gap gives businesses a more reliable basis for pricing and planning.
According to him, 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, particularly given that stronger capital buffers would enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
Furthermore, Abdullahi stated that huge capital in the banks provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation.
“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 explained
On building institutional resilience, he said financial institutions must look beyond traditional capital buffers to survive modern economic disruptions, adding that true institutional resilience requires banks to proactively anticipate emerging risks, absorb sudden shocks, and rapidly recover, proving that lessons from past financial crises demand preparation for entirely unfamiliar threats.
The Deputy Governor, who also spoke to corporate governance and risk responsibility, stated that while raising capital serves as a critical baseline, bank boards and management teams must implement stringent internal controls and recognize risks early.
He maintained that decisions must firmly protect depositors and investors by prioritizing lending to viable projects, curbing excessive risk-taking, and upholding strict executive integrity and transparency.
Also focusing on cybersecurity and digital evolution, Abdullahi said the rapid migration of financial services to digital channels demands heavy and continuous fintech investment, adding that efforts at tackling growing digital vulnerabilities should see the banks aggressively bolstering their cybersecurity infrastructure, data protection frameworks, disaster recovery protocols, and business continuity plans.
He warned that while innovation drives growth, and creates opportunities, public trust hinges on secure transactions and reliable access to funds during system crises.
Looking ahead, Abdullahi warns that regulators will have no choice but to tighten the screws, ramping up risk-based supervision, intensifying market surveillance, and forcing institutions through grueling stress tests.
