Nigeria’s Foreign Reserves Hit 7-Year High of $46.7 Billion Amid Economic Recovery
Nigeria’s foreign-exchange reserves have climbed to a seven-year high of $46.7 billion, the Central Bank of Nigeria (CBN) announced on Tuesday. The surge, driven by stronger oil receipts, sustained balance-of-payments inflows, and renewed investor confidence, positions the country to cover 10.3 months of imports, marking a significant milestone in Nigeria’s economic recovery.
CBN Governor Olayemi Cardoso, speaking through Deputy Governor for Economic Policy Muhammad Abdullahi in Abuja, described the development as evidence of improving macroeconomic fundamentals. “Foreign reserves have risen to $46.7 billion, supported by sustained inflows and renewed investor participation across various asset classes,” he said during the 20th anniversary of the central bank’s Monetary Policy Department.
The increase in reserves coincides with a strengthening naira, which has appreciated against the dollar this year. Reforms aimed at improving market liquidity and reducing arbitrage have tightened the spread between the official and Bureau-de-Change rates to below 2%, reflecting growing confidence in Nigeria’s exchange-rate framework. Additionally, easing inflation—headline inflation fell to 16.05% in October from 34.6% last year—signals that monetary policies are gradually stabilizing prices.
Global investors and ratings agencies have taken notice of Nigeria’s progress. Cardoso highlighted that all three major international ratings firms recently upgraded the country’s outlook, citing improvements in macroeconomic indicators and Nigeria’s removal from the FATF grey list, which has enhanced credibility in international finance and trade. “Rising reserves, a stronger naira, slowing inflation, and better ratings have created a more competitive currency, improved trade balances, and laid a stronger foundation for inclusive development,” he said.
While celebrating these achievements, Cardoso cautioned that risks remain amid global economic uncertainty and domestic structural challenges. He emphasized the need for continued innovation, enhanced analytical capacity, and adoption of technology and big data to ensure Nigeria’s transition toward a rules-based, inflation-targeting monetary framework remains on track.
source: The sun