CBN Says Nigeria’s FX Reserves Jump Above $40 Billion
CBN Governor Olayemi Cardoso says foreign exchange reforms have lifted reserves, improved market confidence and strengthened Nigeria’s economic outlook.
Nigeria’s FX reserves have risen sharply to more than $40 billion, according to Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, who attributed the growth to reforms aimed at improving transparency, liquidity and investor confidence.
Speaking at the BusinessDay CEO Forum in Lagos, Cardoso said the country’s net Nigeria’s FX reserves increased by more than 1,233 per cent from about $3 billion to over $40 billion. He added that gross external reserves have reached approximately $52 billion, providing around 10 months of import cover and strengthening the country’s ability to withstand external shocks.
Cardoso said the reforms have transformed a foreign exchange market previously characterised by multiple exchange rates, limited transparency and persistent shortages into a more market-driven system. “Anybody who wants to argue about what the impact of these reforms has been, go and look at the results figure. As of yesterday, we were hovering at about $52 billion, I believe. When we started, the net reserves figure was in the region of $3 billion. And if you remember, that figure was published at the time by J.P. Morgan and created a lot of panic in the system. More recently, the net reserves figure is in the 40s. So, it’s a long and difficult journey,” he said.
The CBN governor noted that stronger Nigeria’s FX reserves have improved the country’s appeal to both local and foreign investors. He also revealed that diaspora remittances are expected to reach $1 billion per month before the end of the year, following measures designed to encourage foreign exchange inflows.
Cardoso added that the foreign exchange market now operates with sufficient liquidity, allowing the CBN to intervene only when necessary. He stressed that the reserves are intended to protect the economy rather than serve as a tool for routinely defending the naira.
He also highlighted ongoing bank recapitalisation and stronger regulatory oversight as key priorities for maintaining financial sector stability. According to Cardoso, the improved macroeconomic environment has attracted growing interest from international investors, while local businesses should position themselves to benefit from emerging opportunities created by the reforms.
Do you believe Nigeria’s foreign exchange reforms will deliver long-term economic growth and investor confidence?
