CBN flags economic stabilisation as Nigeria’s FX reserves hit seven-year high of $46.7bn

Nigeria’s foreign exchange reserves have surged to $46.7 billion, marking the highest level in seven years, the Central Bank of Nigeria (CBN) announced on Tuesday. The milestone, the first since 2018, the bank noted, underscores renewed investor confidence, improved oil receipts, and stronger balance-of-payments inflows.

CBN Governor Olayemi Cardoso, represented by Deputy Governor in charge of Economic Policy, Dr. Muhammad Abdullahi, revealed the development at the 20th anniversary of the bank’s Monetary Policy Department (MPD) in Abuja. He said the reserves now provide 10.3 months of import cover for goods and services, reflecting sustained inflows and heightened foreign portfolio participation.

“Foreign reserves have risen to $46.7 billion as of November 14, 2025, supported by renewed investor confidence, improved oil receipts, and stronger balance-of-payments inflows,” Cardoso said. He noted that the growth in reserves has contributed to stabilising the naira, with the gap between official and Bureau de Change rates now below two per cent.

The governor also highlighted broader macroeconomic improvements, citing seven consecutive months of disinflation, with headline inflation easing to 16.05 per cent in October 2025 from a peak of 34.6 per cent in November 2024. Core inflation, he added, is also beginning to ease.

“These developments signal a return of investor trust and policy credibility,” Cardoso said, pointing to recent upgrades by all three major international rating agencies and Nigeria’s removal from the Financial Action Task Force Grey List, demonstrating alignment with global standards.

He reflected on two decades of monetary policy reforms, crediting the MPD for innovations such as the introduction of the Monetary Policy Rate in 2006, adoption of the interest-rate corridor system, enhanced policy analysis, and steps toward a full inflation-targeting framework.

Dr. Victor Oboh, Director of the MPD, described the economic recovery as “visible and encouraging” after years of instability. He recalled joining the CBN in October 2023 when the FX system was under severe stress, net reserves were depleted, and parallel-market premiums were high. He emphasised that current improvements were driven by decisive reforms and restored market confidence.

“Inflation has slowed to 16 per cent, the FX market has rebounded, and trust in the central bank is being restored,” Oboh said, while warning that fiscal-monetary alignment across federal and sub-national governments remains critical to sustain gains.

Former Monetary Policy Committee member Prof. Abdul-Ganiyu Garba reviewed global economic theories influencing policy, while IMF Resident Representative Dr. Christian Ebeke reaffirmed the Fund’s support for Nigeria’s ongoing reforms.

The CBN’s announcement follows a $2.35 billion dual-tranche Eurobond issuance by the Federal Government, which, alongside stronger FX receipts, has helped push reserves to this seven-year peak. Analysts say the combination of prudent monetary policy, external inflows, and fiscal reforms has strengthened Nigeria’s macroeconomic outlook, supporting currency stability and investor confidence.