Nigeria’s foreign reserves hit $46.7bn, highest in 7yrs
By Seun Ibiyemi
Nigeria’s foreign reserves have climbed to $46.7 billion, marking the highest level in seven years, the Central Bank of Nigeria (CBN) has revealed.
The rise is attributed to renewed investor confidence, stronger oil receipts, and improved balance-of-payments inflows.
CBN Governor Olayemi Cardoso, represented by Deputy Governor Dr. Muhammad Abdullahi, disclosed the milestone at the 20th Anniversary of the Bank’s Monetary Policy Department (MPD) in Abuja.
He noted that the reserves, as of November 14, 2025, provide 10.3 months of import cover, underscoring the success of the Bank’s reform programme.
“Foreign reserves have risen to $46.7 billion, supported by sustained inflows and renewed investor participation across various asset classes,” Cardoso said.
He linked the increase to stronger portfolio inflows, improved oil receipts, and policies that have stabilized the foreign exchange market.
The naira has strengthened, while the gap between the official and Bureau-de-Change rates has narrowed to below two percent, reflecting restored confidence in the currency.
The Governor also highlighted easing inflationary pressures, with headline inflation slowing to 16.05 percent in October 2025, down from 34.6 percent in November 2024.
He described this as “seven consecutive months of disinflation” and “the lowest in three years,” noting that core inflation has also begun to soften.
Cardoso further emphasized that recent reforms have reshaped investor sentiment and strengthened Nigeria’s macroeconomic outlook. “All three top international ratings agencies upgraded Nigeria,” he said, citing S&P Global Ratings’ revision of the country’s outlook from stable to positive.
He also highlighted Nigeria’s removal from the FATF Grey List as a key step in restoring credibility within the international financial system, paving the way for improved trade finance and investment flows.
According to the CBN, the combination of rising reserves, a stronger naira, easing inflation, and better ratings has created “a more competitive currency, improved trade balances, and a stronger foundation for inclusive development.”
Cardoso used the anniversary to commend the MPD’s central role in monetary-policy evolution over the past two decades, citing reforms such as the introduction of the Monetary Policy Rate in 2006, the interest-rate corridor system, enhanced policy communication, and the national shift toward an inflation-targeting framework.
Despite these gains, he cautioned that challenges remain, including global shocks, commodity-price swings, and structural imbalances.
Cardoso stressed the importance of continued analytical capacity, better modelling tools, and the use of technology and big data to strengthen policy decisions, while underscoring the Bank’s ongoing transition to a full inflation-targeting regime as a priority to enhance transparency, credibility, and monetary policy effectiveness.