The Central Bank of Nigeria (CBN) has announced that the country’s foreign exchange reserves have reached $43.4 billion, marking a five-year high and providing 11 months of import cover.
Mohammed Abdullahi, deputy governor of the CBN for economic policy, disclosed this at the Nigeria Investors Forum in Washington, D.C, United States, during the International Monetary Fund–World Bank annual meetings.
Abdullahi said the reserves reached the milestone on 10th October, despite the apex bank clearing foreign exchange backlogs that had accumulated over time.
“Our gross reserves are at a five-year high of $43.4 billion as of October 10, enough to cover 11 months of imports,” he said.
“This growth comes after clearing FX backlogs and improving liquidity across the market.”
The deputy governor said the naira has maintained stability, with the exchange rate premium between official and parallel markets narrowing to less than 3 percent, compared to over 50 percent recorded in 2022.
He added that inflation has declined to 18.02 percent, representing the lowest level in three years, whilst capital inflows and remittances have strengthened Nigeria’s balance of payments.
Abdullahi explained that the CBN continues to implement orthodox monetary policies, transparency in foreign exchange operations, and alignment with fiscal reforms aimed at sustaining macroeconomic stability.
Olayemi Cardoso, governor of the CBN, who also spoke at the forum, said the increase in foreign reserves signals renewed investor confidence and the positive impact of ongoing economic reforms.
“Nigeria’s focus remains clear, strengthening our fundamentals, advancing reforms, and unlocking opportunities for sustainable investment and growth,” Cardoso said.
“We are encouraged by the progress made so far and remain confident that ongoing reforms are laying a stronger foundation for a more resilient economy.”
Cardoso noted that the CBN and the ministry of finance have worked collaboratively to stabilise macroeconomic indicators, rebuild buffers, and restore transparency in monetary policy.
The governor said sound macroeconomic policies are beginning to yield results, adding that there is a strong correlation between disciplined economic management, growth, and disinflation.
The announcement comes as Nigeria continues to implement various economic reforms aimed at attracting foreign investment and stabilising the economy.
