The Central Bank of Nigeria (CBN) has confirmed that the country’s $42.01 billion external reserves are sufficient to cover more than nine months of imports in 2025, enhancing economic stability and resilience. This positive development was shared on Wednesday by CBN Governor, Olayemi Cardoso, during a performance index report presentation to the Senate Committee on Banking, Insurance, and other Financial Institutions.
Cardoso highlighted that the reserves, which grew from $38.35 billion on September 30, 2024, to $42.01 billion by December 12, 2024, provide a robust buffer against economic shocks, surpassing the international benchmark of three months’ worth of imports.
“The increase in reserves was driven by receipts from crude oil-related taxes and third-party receipts,” he said, adding that Nigeria had maintained a current account surplus and seen improvements in its trade balance. The reserves now cover 9.09 months of imports or 13.91 months of goods and services, reinforcing Nigeria’s economic foundation.
In his address, Cardoso also spoke about new CBN policy initiatives aimed at advancing a cash-less economy, including enhanced use of electronic payment channels for agency banking. The CBN’s measures also target improved operational standards, combating fraud, and addressing industry challenges.
Cardoso projected optimism for 2025, citing positive trends in key sectors such as services and a 61% year-on-year growth in diaspora remittances, which totaled $4.22 billion from January to October 2024. He also noted that the CBN’s policies, including efforts to stabilize the foreign exchange market, would continue to support national development.
However, during the session, Senate Committee Chairman Tokunbo Abiru urged the CBN to consider the impact of rising interest rates on productivity and access to credit. He also called for measures to address cash shortages and low interest rates on savings deposits, as well as for the resumption of targeted interventions for SMEs to foster economic growth.
Additionally, the CBN introduced new guidelines for agency banking, including limits on cash withdrawals and transaction amounts, and stressed the importance of compliance with these new directives to ensure security and stability in the financial system.
