By Obinna Uballa
Policymakers and experts have expressed optimism over Nigeria’s improving economic outlook as the country’s foreign exchange reserves hit a seven-year high of $46.7 billion, the Central Bank of Nigeria (CBN) announced on Tuesday. The milestone, the first since 2018, they say, signals renewed investor confidence, stronger oil receipts, and robust balance-of-payments inflows.
CBN Governor Olayemi Cardoso, represented by Deputy Governor in charge of Economic Policy, Dr. Muhammad Abdullahi, disclosed the reserves’ growth at the 20th anniversary of the bank’s Monetary Policy Department (MPD) in Abuja. The reserves now provide 10.3 months of import cover for goods and services, reflecting a combination of sustained inflows and heightened foreign portfolio participation.
“Foreign reserves have risen to $46.7 billion as of November 14, 2025, underpinned by improved investor confidence, stronger oil earnings, and portfolio inflows,” Cardoso said. He added that the stronger reserve position has contributed to stabilising the naira, with the gap between official and Bureau de Change rates narrowing to below two per cent.
The governor also highlighted the broader macroeconomic impact, pointing to seven consecutive months of disinflation. Headline inflation fell to 16.05 per cent in October 2025, down from 34.6 per cent in November 2024, while core inflation is also easing.
“These indicators reflect a stabilising economy and growing confidence in policy direction,” Cardoso said, noting that all three major international rating agencies have upgraded Nigeria and the country’s removal from the Financial Action Task Force Grey List has further boosted global trust.
The event offered an opportunity to review two decades of monetary policy evolution. Cardoso credited the MPD for innovations such as the introduction of the Monetary Policy Rate in 2006, adoption of the interest-rate corridor system, strengthened policy analysis, and steps toward a full inflation-targeting framework.
Dr. Victor Oboh, Director of the MPD, emphasised that the economic recovery was now “visible and tangible” after years of instability, recalling the FX backlog and high parallel-market premiums he encountered in 2023. He stressed that the reforms implemented since then have restored market confidence and improved monetary policy transmission.
“Inflation has slowed, the FX market has stabilised, and trust in the central bank is being rebuilt,” Oboh said, while warning that sustained fiscal and monetary alignment across federal and state governments remains critical.
Former Monetary Policy Committee member Prof. Abdul-Ganiyu Garba reviewed global economic theories influencing policy decisions, while IMF Resident Representative Dr. Christian Ebeke reaffirmed continued technical support for Nigeria’s reform agenda.
The reserves’ surge follows a $2.35 billion dual-tranche Eurobond issuance by the Federal Government, which, alongside stronger FX receipts, helped lift reserves to $46.7 billion. Analysts say this combination of prudent monetary policy, external inflows, and fiscal reforms has strengthened Nigeria’s macroeconomic outlook, boosting investor confidence and supporting currency stability.
