Naija247news, Washington D.C. — Nigeria’s foreign exchange (FX) reserves have risen to a five-year high of $43.4 billion, signaling renewed investor confidence and the positive impact of ongoing economic reforms, the Central Bank of Nigeria (CBN) has revealed.
The announcement was made by Mohammed Abdullahi, CBN Deputy Governor for Economic Policy, during the Nigeria Investors Forum in Washington, D.C., held alongside the IMF–World Bank Annual Meetings. Abdullahi, who led discussions on Nigeria’s economic outlook and reform progress, said the growth in reserves comes after concerted efforts to clear FX backlogs and improve liquidity across the market.
“Our gross reserves are at a five-year high of $43.4 billion as of October 10, enough to cover 11 months of imports,” Abdullahi said. “This growth comes after clearing FX backlogs and improving liquidity across the market.”
He noted that the naira has remained stable, with the exchange rate premium between the official and parallel markets narrowing to less than 3 percent, a stark contrast to the over 50 percent gap in 2022.
In addition to FX reserves, Abdullahi disclosed that inflation has eased to 18.02 percent, marking the lowest rate in three years. He also highlighted the role of capital inflows and remittances in strengthening Nigeria’s balance of payments, signaling healthier financial dynamics for the country.
“The Central Bank remains committed to orthodox monetary policy, transparency in FX management, and close coordination with fiscal authorities to sustain macroeconomic stability,” Abdullahi added.
CBN Governor Olayemi Cardoso also addressed the forum, stating that the increase in external reserves reflects growing investor confidence and the positive impact of ongoing economic reforms.
“The rise in external reserves reflects the cumulative effect of fiscal and monetary coordination, improved FX flows, and renewed trust in Nigeria’s policy direction,” Cardoso said. “Nigeria’s focus remains clear: strengthening our fundamentals, advancing reforms, and unlocking opportunities for sustainable investment and growth.”
Cardoso further explained that the CBN and the Ministry of Finance have been working closely to stabilise macroeconomic indicators, rebuild buffers, and restore transparency in monetary policy.
“Sound macroeconomic management is beginning to yield tangible results,” he said, adding that “there’s a strong correlation between disciplined economic management, growth, and disinflation.”
The report highlights that Nigeria’s economic reforms — including coordinated fiscal and monetary policies, improved FX allocation, and increased regulatory transparency — are contributing to a more stable macroeconomic environment. Analysts suggest that maintaining this trend could strengthen Nigeria’s global investment profile and support sustainable growth.
Background: Over the past few years, Nigeria faced challenges such as high inflation, FX shortages, and a widening gap between official and parallel market exchange rates. Recent policy measures, including stricter FX management and enhanced oversight of capital flows, appear to have curbed volatility and restored investor confidence.
With FX reserves now sufficient to cover nearly a year of imports, experts say Nigeria is better positioned to handle external shocks, support domestic industries, and gradually strengthen the naira against global currencies
📌 Editor’s Note: For content partnerships and collaborations, reach out via editor@naija247news.com
Naija247news Media Group LLC is committed to ethical, independent journalism that serves the public interest. Our editorial process prioritizes accuracy, fairness, and transparency in reporting. All content is fact-checked and held to the highest standards of integrity. Learn more in our full editorial policy here.
© 2025 Naija247news Media Group LLC. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without prior express written permission from Naija247news Media Group LLC.
Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.
