The Central Bank of Nigeria (CBN) has announced that the country’s foreign exchange (FX) reserves have climbed to a five-year high of $43.4 billion, despite recent efforts to clear FX backlogs and stabilise the currency market.
The disclosure was made by Mohammed Abdullahi, the CBN Deputy Governor for Economic Policy, during the Nigeria Investors Forum held in Washington, D.C., United States, on the sidelines of the IMF–World Bank Annual Meetings. Abdullahi led discussions on Nigeria’s economic outlook and reform progress.
“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, compared to over 50 percent in 2022.
Abdullahi also revealed that inflation has declined to 18.02 percent, the lowest level in three years, while capital inflows and remittances have continued to strengthen Nigeria’s balance of payments.
He emphasised that the CBN remains committed to orthodox monetary policy, transparency in FX management, and close coordination with fiscal authorities to sustain macroeconomic stability.
Also speaking at the forum, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, said the increase in external reserves demonstrates renewed 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.”
He added that the CBN and the Ministry of Finance have been working “hand in hand” to stabilise macroeconomic indicators, rebuild buffers, and restore transparency in monetary policy.
Cardoso concluded that sound macroeconomic management is beginning to yield tangible results, stressing that “there’s a strong correlation between disciplined economic management, growth, and disinflation.”
