The Central Bank of Nigeria (CBN) announced on Wednesday in Abuja that the country’s external reserves, currently at $42.01 billion, are sufficient to finance the importation of goods and services for over nine months.
The apex bank also assured Nigerians of improved economic prospects by 2025.
CBN Governor, Mr. Olayemi Cardoso, disclosed this during the presentation of a performance index report to the Senate Committee on Banking, Insurance, and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East).
According to Mr. Cardoso, external reserves increased from $38.35 billion on September 30, 2024, to $42.01 billion as of December 12, 2024. This growth, he explained, was primarily driven by crude oil-related tax receipts and third-party inflows during the third quarter of 2024.
“We maintained a current account surplus and saw remarkable improvements in our trade balance. Our external reserves can now finance over 9.09 months of imports for goods and services, or 13.91 months for goods alone, exceeding the international benchmark of three months. This serves as a robust buffer against economic shocks,” Cardoso stated.
On the issue of cash shortages, the CBN Governor reaffirmed the enforcement of a new policy imposing a fine of N150 million on any bank branch caught illegally distributing new Naira notes to currency hawkers or other unscrupulous entities.
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Looking ahead, Mr. Cardoso expressed optimism about Nigeria’s economic outlook, citing policies and measures already in place to improve the economy in the 2025 fiscal year.
“Distinguished Senators, despite the challenges facing our economy, there are clear reasons for optimism. The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth in key sectors, particularly services, point to a path toward recovery and stability,” he concluded.
In response to the presentation, the committee chairman commended Mr. Cardoso, noting that his performance deserved applause, though Senate rules prohibit such gestures during proceedings.
