Nigeria’s foreign reserves have climbed above $46 billion — the highest level recorded in seven years — according to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso.
Cardoso, represented by the Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, disclosed the development on Tuesday during the 20th Anniversary celebration of the Monetary Policy Department in Abuja. He described the milestone, reached on November 14, 2025, as a major endorsement of the Bank’s ongoing policy reforms.
“Our foreign reserves have risen to $46.7 billion, supported by sustained inflows and renewed investor participation across various asset classes,” Cardoso said.
He explained that the current reserve position provides 10.3 months of import cover—significantly above global adequacy thresholds. The CBN attributes the sharp buildup to stronger oil earnings, increased portfolio inflows, and continuing reforms that have brought greater stability to the foreign exchange market.
Cardoso also noted that the naira has continued to appreciate in recent weeks, with the gap between the official and Bureau-de-Change exchange rates narrowing to below two percent, a sign of restored investor and market confidence.
Inflation Falls Sharply After Months of Disinflation
The CBN governor highlighted improvements in price stability, pointing out that headline inflation, which peaked at 34.6% in November 2024, dropped to 16.05% in October 2025 — marking seven consecutive months of disinflation and the lowest rate in three years. Core inflation has also begun to ease.
Global Recognition and Ratings Upgrades
Cardoso said Nigeria’s improved macroeconomic indicators have attracted global recognition. All three major international ratings agencies have upgraded Nigeria’s outlook.
He cited S&P Global Ratings’ shift from “stable” to “positive,” alongside Nigeria’s removal from the Financial Action Task Force (FATF) Grey List — a critical milestone for rebuilding global financial credibility.
According to him, the combined gains of stronger reserves, a firmer naira, lower inflation, and improved credit ratings have contributed to “a more competitive currency, better trade balances, and a stronger foundation for inclusive growth.”
Monetary Policy Department’s Role Recognised
Reflecting on the department’s achievements over the past 20 years, Cardoso praised its contributions to Nigeria’s monetary policy evolution, including the introduction of the Monetary Policy Rate in 2006, the adoption of the interest-rate corridor, improved policy communication, and a gradual shift toward an inflation-targeting framework.
Risks Remain, CBN Cautions
Despite recent gains, Cardoso warned of persisting risks such as global economic shocks, volatile commodity prices, and domestic structural challenges. He urged the Monetary Policy Department to remain “agile and forward-looking,” emphasizing the need for deeper analytics, improved modelling capacity, and greater use of technology and big data.
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He reaffirmed that moving Nigeria toward a full inflation-targeting regime remains one of the CBN’s strategic priorities. “Inflation targeting will enhance transparency, build credibility, and make monetary policy more effective,” he said.
Eurobond Success Highlights Investor Confidence
The surge in reserves comes shortly after the Federal Government returned to the international capital market with a $2.35 billion Eurobond issuance—its first in years. The issuance drew $13 billion in investor orders, the largest orderbook in Nigeria’s history. The Debt Management Office (DMO) described the oversubscription as strong evidence of renewed investor confidence in Nigeria’s economic reforms and long-term fiscal direction.
