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Nigeria’s foreign reserves have surged to $46.7 billion, the highest level recorded since 2018, reflecting improved investor confidence, stronger oil receipts, and rising external inflows. The Central Bank of Nigeria (CBN) announced the new figure on Tuesday, describing it as a major breakthrough under its ongoing economic and monetary reforms.
CBN Governor, Olayemi Cardoso, represented by the Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, disclosed the latest data in Abuja during the 20th Anniversary of the Monetary Policy Department (MPD).
Cardoso said the new reserve position—achieved on November 14, 2025—is robust enough to provide 10.3 months of import cover, a performance he described as a “milestone achievement.”
“Foreign reserves have risen to $46.7 billion… supported by sustained inflows and renewed investor participation across various asset classes,”
he stated.
Why the Reserves Rose
According to the CBN, the sharp boost in external reserves is driven by:
- Strong portfolio inflows into government securities and equities
- Higher oil revenues, with more reliable crude production figures
- Improved balance-of-payments stability
- Greater confidence following CBN reforms targeting forex transparency and liquidity
Cardoso noted that these developments have also helped the naira strengthen, with the gap between the official FX window and the Bureau-de-Change market shrinking to below 2% — a level not seen in years.
Inflation Falls to Three-Year Low
The Governor highlighted another key achievement: inflation is now easing after months of aggressive policy tightening.
- Headline inflation: 16.05% in October 2025
(down from 34.6% in November 2024) - Consecutive months of disinflation: 7
- Core inflation: Also softening
Cardoso described this as the clearest sign yet that monetary policy reforms are beginning to deliver measurable stability.
Reforms, Ratings and the Return of Trust
The CBN credited recent reforms with restoring global confidence in Nigeria’s economy. Cardoso noted that:
- All three major global rating agencies upgraded Nigeria’s outlook.
- S&P Global Ratings moved Nigeria’s outlook from stable to positive.
- Nigeria was removed from the FATF Grey List, improving access to global finance.
He said the combined effects of rising reserves, a stronger naira, lower inflation and better ratings have laid the foundation for:
- A more competitive currency
- Improved trade balances
- Better investment inflows
- A more stable macroeconomic environment
Looking Back: MPD’s Two Decades of Reforms
Marking the 20th anniversary of the Monetary Policy Department, Cardoso praised the MPD for its role in shaping Nigeria’s monetary framework, including:
- The introduction of the Monetary Policy Rate (MPR) in 2006
- Adoption of the interest-rate corridor system
- Enhanced policy communication strategies
- Nigeria’s shift toward a more structured inflation-targeting regime
He urged policymakers to remain “agile and forward-looking” amid global uncertainties, commodity-price swings, and domestic structural challenges.
Inflation-Targeting: The Next Big Step
Cardoso emphasized that the CBN is now focused on transitioning fully to an inflation-targeting regime, stating that:
- It will boost transparency
- Strengthen public trust
- Improve the effectiveness of monetary policy
Context: Nigeria’s Recent Eurobond Success
The spike in reserves comes barely two weeks after Nigeria’s successful return to global capital markets.
The Federal Government raised $2.35 billion in a dual-tranche Eurobond issuance, attracting a record $13 billion in investor orders — the highest demand ever seen for a Nigerian Eurobond.
The Debt Management Office (DMO) described the issuance as a landmark achievement, saying it reflects renewed global confidence in the country’s economic reforms and fiscal discipline.