Nigeria’s foreign reserves rose to its highest level in seven years, reaching $46.7bn as of November 14. The Central Bank of Nigeria confirmed the figure during an event in Abuja, describing it as a clear sign of renewed confidence in the country’s economic direction.
The CBN Governor, Olayemi Cardoso, represented by the Deputy Governor for Economic Policy, Muhammad Abdullahi, told participants at the 20th anniversary of the Monetary Policy Department that the current reserve level is the highest since 2018. He linked the rise to improved oil earnings, stronger balance-of-payments inflows and a wider return of foreign investors to Nigerian markets. He said the current position provides more than ten months of import cover for goods and services, which he described as a significant marker of stability.
Cardoso said the stronger reserve profile had helped steady the naira in recent months. He noted that the gap between the official market and the Bureau de Change segment had narrowed to less than two percent. According to him, the firmer currency has encouraged new interest in Nigeria’s fixed-income and money markets where investors appear more willing to commit funds in response to clearer policy direction and tighter monetary conditions.
He pointed to a steady fall in inflation as further evidence of progress. Headline inflation, which reached 34.6 percent in late 2024, eased to 16.05 per cent in October. He described the period as seven straight months of disinflation and the lowest reading in three years. Core inflation, he added, had also begun to slow.
Cardoso said the broader improvement had not gone unnoticed abroad. He referenced recent upgrades from the major international ratings agencies and recalled Nigeria’s removal from the Financial Action Task Force Grey List, a development he said signalled the country’s compliance with global standards. He described the moment as a turning point after years of strain in the foreign-exchange market.
The event also offered an opportunity to review the work of the Monetary Policy Department over the past two decades. Cardoso credited the department with shaping the modern framework of monetary policy, including the creation of the Monetary Policy Rate in 2006, the introduction of an interest-rate corridor and the gradual shift toward a full inflation-targeting regime. He said the department remained central to policy design and technical support for the Monetary Policy Committee.
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The Director of the Monetary Policy Department, Victor Oboh, said the recent recovery had restored optimism after what he described as one of the most fragile periods in the nation’s economic history. He recalled joining the bank in 2023 when the FX backlog had reached a point he believed signalled the risk of default. According to him, the system had been weakened by years of inconsistent choices that produced high inflation, depleted reserves and a deep parallel-market premium. He said the reforms of the past two years had reversed much of the damage, though he warned that fiscal alignment across the three tiers of government remained essential for lasting progress.
Oboh argued that inflation targeting would only succeed if supported by structural reforms and credible policy transmission. He said recent gains in the foreign-exchange market and stronger investor trust showed that reforms were beginning to take hold.
A former member of the Monetary Policy Committee, Prof Abdul-Ganiyu Garba, delivered the anniversary lecture with a review of global economic thought and its influence on policy models. The IMF Resident Representative in Nigeria, Christian Ebeke, reaffirmed the Fund’s support for ongoing reforms and said the institution would continue to provide technical guidance as the economy consolidates.
Nigeria’s reserve jump comes shortly after the Federal Government raised $2.35bn from international markets through its latest Eurobond issuance. The proceeds, combined with stronger FX inflows, helped push reserves to their highest point since 2018.
