Nigeria’s foreign exchange reserves have climbed to $55.1bn, their highest level in 18 years, strengthening the country’s capacity to withstand global economic disruptions, Central Bank of Nigeria Governor, Olayemi Cardoso, has said.
Cardoso said the growing reserves buffer, alongside relative stability in the naira and easing inflation, would help limit the impact of external pressures on households and businesses.
He spoke at the ongoing IMF-World Bank Annual Meetings in Bangkok, Thailand, where he defended the benefits of the country’s economic reforms and monetary policy adjustments.
According to the CBN governor, Nigeria’s stronger external position has reduced the nation’s vulnerability to global shocks, including uncertainties arising from geopolitical conflicts and international trade tensions.
He argued that without the improvement in reserves, Nigeria could have faced more severe consequences from the same pressures affecting other economies.
Cardoso said the accumulation of foreign exchange reserves was not merely a financial indicator but also an important safeguard for the wider economy.
He explained that a stronger reserve position gives the country greater capacity to respond to external pressures and helps support confidence in the FX market.
The CBN governor also pointed to the naira’s recent performance, saying the currency had remained relatively stable and appreciated, with consequences for economic activity.
A more stable exchange rate can reduce the naira cost of imported goods and production inputs, potentially easing pressure on businesses and consumers. However, the extent of any relief depends on how exchange rate movements feed through to retail prices.
Cardoso maintained that Nigerians were benefiting from the policy improvements, even if those gains were not always immediately apparent.
The CBN governor identified falling inflation as another important channel through which economic reforms could benefit ordinary Nigerians, particularly low-income households.
He described inflation as a particularly severe burden on poorer households because rising prices reduce the purchasing power of their incomes.
Lower inflation, if sustained, would help slow the rate at which household budgets are eroded by increases in the cost of food, transport, housing and other essentials.
However, a decline in the inflation rate does not necessarily mean that prices are falling. It means prices are rising more slowly, unless the economy records outright price declines.
Cardoso urged Nigerians to acknowledge the improvements recorded in the economy rather than dismissing the gains from ongoing reforms.
Nigeria’s external reserves continued to rise through September and into October, according to the figures cited in the report.
The reserves increased from about $53.90bn on 1 September to $54.93bn on 30 September, representing a monthly gain of $1.03bn.
The upward movement continued in October, with reserves reaching $54.95bn on 2 October and $55.08bn on 9 October before climbing to $55.1bn on0 13 October.
The accumulation strengthens Nigeria’s external buffer, which can help the country meet foreign currency obligations and manage periods of pressure on the balance of payments.