Nigeria’s external reserves have surged to $46.7 billion, the highest level recorded in seven years, according to the Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso. The milestone reflects renewed investor confidence, stronger inflows, and a turnaround in Nigeria’s macro-economic environment.
Cardoso, represented by the Deputy Governor (Policy), Dr. Mohammed Abdullahi, made the disclosure at the 20th anniversary colloquium of the CBN’s Monetary Policy Department (MPD) in Abuja. He noted that the current reserve level provides 10.3 months of import cover, a buffer not seen since 2018.
According to him, the impressive buildup is supported by improved oil receipts, sustained foreign portfolio inflows, and stronger balance-of-payments dynamics. These gains have also triggered upgrades from the world’s major ratings agencies, including a recent S&P Global Ratings outlook revision from stable to positive.
Cardoso described the past two years as “transformative for the Nigerian economy,” driven by tight monetary policy, structural reforms, and steps aimed at restoring macroeconomic stability. He pointed out that inflation has fallen to 16.05% as of October 2025—down sharply from the 34.6% peak in late 2024—marking the lowest level in three years and the seventh straight month of disinflation.
He also highlighted the relative calm in the foreign exchange market, where the naira has strengthened and the gap between the official and Bureau de Change rates has dropped to less than 2%. This progress, he said, has restored predictability for businesses and households.
However, Cardoso acknowledged that challenges remain, including global price volatility, geopolitical tensions, and structural imbalances at home—factors that require continuous reassessment of Nigeria’s monetary approach.
The IMF’s Resident Representative, Dr. Christian Ebeke, who also spoke at the event, commended the CBN for what he called a “huge turnaround” compared to previous years. Ebeke recalled that, at one point, the apex bank’s staggering FX backlog suggested a looming default, describing the former unorthodox policies as unsustainable.
He emphasized that while unconventional monetary measures may work in some countries, “they did not work in Nigeria.”
The colloquium, themed “Monetary Policy in Nigeria: Past, Present and Future,” offered a reflection on two decades of monetary policy evolution and the adjustments required as the global and domestic environment continues to shift.