Nigeria’s external reserves have recorded a remarkable 58 per cent increase since Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria (CBN) in September 2023, highlighting the impact of sweeping foreign exchange reforms and renewed investor confidence in the economy. According to figures presented by the apex bank, the country’s reserves have grown from approximately $33.28 billion when Cardoso took office to $52.52 billion, reflecting one of the strongest reserve performances in recent years.
The significant rise has been largely driven by increased export earnings, stronger foreign portfolio investments, and reforms that have made Nigeria’s foreign exchange market more transparent and attractive to investors. Speaking after the 306th Monetary Policy Committee meeting, Cardoso attributed the growth to measures introduced by the CBN to restore confidence in the financial system. Analysts also point to reduced pressure on foreign reserves following the removal of fuel subsidies and the expansion of local refining capacity, particularly with the commencement of operations at the Dangote Petroleum Refinery.
Economic experts say the reforms have created a more favourable investment environment. Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, noted that higher interest rates have encouraged foreign portfolio inflows, while the deregulation of the foreign exchange market has boosted remittance inflows. He also explained that stronger non-oil exports and higher global crude oil prices, influenced by geopolitical tensions in the Middle East, have further strengthened Nigeria’s external reserve position.
Recent economic data supports this positive outlook. Foreign portfolio investment into Nigeria reached $9.86 billion in the first quarter of 2026, the highest recorded in over 12 years. Meanwhile, non-oil exports climbed to a historic $6.1 billion in 2025, representing an 11.5 per cent increase from the previous year, according to the Nigerian Export Promotion Council. The country has also seen a sharp decline in petrol import costs, with the import bill dropping by nearly 29 per cent in 2025 as local refining reduced dependence on imported fuel.
Despite the encouraging performance, analysts believe greater transparency is still needed. While Cardoso has been praised for clearing a $7 billion foreign exchange backlog, eliminating multiple exchange rates, strengthening banking reforms, and helping Nigeria exit the Financial Action Task Force (FATF) grey list, experts argue that publishing the country’s net external reserves would provide a clearer picture of Nigeria’s financial health. They maintain that although gross reserves reflect the total foreign assets held by the CBN, net reserves—after deducting short-term liabilities—offer a more accurate measure of the nation’s true external financial position.
source: punch
