Nigeria’s net foreign exchange reserves have climbed to about $40 billion from roughly $3 billion at the start of the government’s economic reform programme, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said in Lagos, attributing the sharp rise to measures aimed at restoring macroeconomic stability and investor confidence in Africa’s largest economy.
Speaking at the BusinessDay CEO Forum on Thursday, Cardoso said the country’s gross external reserves had also increased to approximately $52 billion, underscoring what he described as the growing impact of reforms introduced over the past two years to stabilise the naira and improve foreign exchange market liquidity.
According to the CBN governor, Nigeria’s net reserves stood at around $3 billion when the reforms began, a figure that was published at the time by J.P. Morgan and fuelled concerns about the country’s external financial position.
He said the latest reserve levels represent a 1,233.3 per cent increase and reflect the cumulative effects of policy actions designed to address persistent foreign exchange shortages and narrow the gap between official and parallel market exchange rates.
Cardoso said the reforms have helped rebuild confidence in the economy after years of volatility in the foreign exchange market, adding that the current level of macroeconomic stability should serve as a foundation for broader economic expansion.
- “Macroeconomic stability is a platform for growth rather than a destination,” he told business leaders, urging them to take advantage of the improved operating environment by increasing investments.
He argued that sustained stability creates the conditions needed for higher levels of domestic and foreign investment, which can support economic growth and generate employment opportunities in the country.
The improvement in Nigeria’s reserve position comes as the central bank continues efforts to deepen liquidity in the foreign exchange market and remove long-standing distortions that had weakened confidence among investors and businesses.
