Nigeria’s Foreign Reserves Soar to $46.7 Billion, Boosting Naira and Investor Confidence
Nigeria’s foreign reserves have surged to $46.7 billion as of November 14, 2025, marking the highest level in seven years and providing 10.3 months of import cover for goods and services, the Central Bank of Nigeria (CBN) has revealed. The announcement, made during a colloquium celebrating the 20th anniversary of the Bank’s Monetary Policy Department in Abuja, highlights a period of stability in the naira and growing confidence among investors.
CBN Governor Olayemi Cardoso, represented by Deputy Governor Muhammad Sani Abdullahi, noted that inflation has moderated to 16.05% in October 2025, down from 34.6% a year earlier. Core inflation is also softening, indicating that the Bank’s tight monetary policies are effectively stabilizing the economy. The narrowing gap between official and parallel exchange rates, now below two percent, has further enhanced confidence for both households and businesses.
The recent rise in reserves is attributed to stronger oil receipts, sustained foreign inflows, and renewed participation in Nigeria’s financial markets. Cardoso linked the optimism to international credit rating upgrades and Nigeria’s removal from the Financial Action Task Force Grey List, reflecting progress in anti-money laundering and counter-terrorism financing standards. These developments are expected to attract more foreign investment and strengthen trade finance opportunities.
The CBN is also advancing toward full inflation targeting, a move designed to anchor expectations, improve transparency, and reinforce price stability. Director of the Monetary Policy Department, Dr. Victor Oboh, emphasized that Nigeria’s phased migration to inflation targeting has been supported by disciplined policy, high-level forums, and stronger communication, contributing to exchange rate stability, reduced gaps, and rising foreign reserves.
Economists and analysts say the increase in reserves sends a strong positive signal for Nigeria’s economy. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprises, explained that the robust reserves help defend the naira, stabilize inflation, and boost both local and foreign investor confidence. With these measures, Nigeria appears poised for more resilient economic growth and a stronger financial outlook in the months ahead.
source: Dailytrust