Policymakers have expressed optimism over Nigeria’s economic outlook as foreign exchange reserves surged to $46.7 billion, the highest level in seven years, the Central Bank of Nigeria (CBN) announced on Tuesday. The increase, the first since 2018, reflects growing investor confidence, stronger oil receipts, and robust balance-of-payments inflows.
CBN Governor Olayemi Cardoso, represented by Deputy Governor Dr. Muhammad Abdullahi, disclosed the figures at the 20th anniversary of the bank’s Monetary Policy Department (MPD) in Abuja. He noted that the reserves now provide 10.3 months of import cover for goods and services, signalling improved macroeconomic stability.
“Foreign reserves have risen to $46.7 billion, supported by sustained inflows and renewed investor participation across multiple asset classes,” Cardoso said. He highlighted that the stronger reserves have narrowed the naira’s gap between official and parallel-market rates to below two per cent, bolstering market confidence.
The governor also noted that the reserve growth has contributed to continued disinflation. Headline inflation eased to 16.05 per cent in October 2025, down from a peak of 34.6 per cent in November 2024, marking seven consecutive months of slowing price increases. Core inflation, he said, is also softening, indicating sustained improvements in economic fundamentals.
Cardoso underscored that Nigeria’s economic gains have been recognised globally, with top rating agencies upgrading the country’s outlook. He also cited the nation’s removal from the Financial Action Task Force Grey List as a positive signal for international investors.
The MPD, according to the governor, has been central to these reforms, introducing key tools such as the Monetary Policy Rate, the interest-rate corridor system, and steps toward a full inflation-targeting framework.
Dr. Victor Oboh, Director of the MPD, described the current recovery as a “visible turnaround” after years of instability. He highlighted that prior FX backlogs and high parallel-market premiums had undermined confidence, but reforms have since stabilised the market and restored trust in monetary policy.
Nigeria’s foreign exchange surge comes shortly after the Federal Government raised $2.35 billion through a dual-tranche Eurobond issuance. Combined with stronger FX receipts, these inflows have driven reserves to $46.7 billion, providing policymakers with renewed confidence in the country’s economic trajectory.
International partners, including the IMF, have expressed support for Nigeria’s ongoing reforms, reinforcing optimism that continued policy consistency could further stabilise the economy and attract investment.
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