$42bn external reserves sufficient for nine months of imports — CBN

The Central Bank of Nigeria (CBN) has confirmed that the country’s external reserves of $42 billion are sufficient to finance imports of goods and services for more than nine months.

CBN Governor, Mr. Olayemi Cardoso, made this announcement while presenting a performance report to the Senate Committee on Banking, Insurance, and other Financial Institutions on Wednesday, December 18, 2024.

The report was delivered to Senator Adetokunbo Abiru, Chairman of the Committee, at the National Assembly in Abuja.

Governor Cardoso explained that external reserves had risen from $38.35 billion in September to $42.01 billion by December 12, 2024. This increase was largely driven by receipts from crude oil-related taxes and third-party payments in Q3 2024.

“We maintained a current account surplus and saw remarkable improvements in our trade balance,” he said.

“Our external reserves level can finance over 9.09 months of imports of goods and services, well above the international benchmark of 3.0 months, providing a strong buffer against external shocks.”

The governor also addressed the issue of cash shortages, reiterating the application of a new policy that imposes a fine of N150 million on any bank branch caught distributing new Naira notes to currency hawkers or engaging in illegal practices.

He assured Nigerians that the economy would experience improved prospects in 2025, pointing to the gradual stabilisation of the forex market, ongoing banking sector recapitalisation, and positive growth in key sectors, particularly services.

In response, Senator Abiru commended the CBN for its efforts to stabilise the economy, stating that the bank’s policies have contributed significantly to the country’s economic recovery.