The Central Bank of Nigeria (CBN) has reported that the nation’s external reserves have climbed to $46.7 billion, the highest level in seven years, since 2018. This level of reserves is sufficient to cover over 10 months of imports of goods and services.

CBN Governor Mr. Yemi Cardoso made the disclosure during the opening of the 20th anniversary colloquium of the Monetary Policy Department (MPD) in Abuja. Represented by Dr. Mohammed Abdullahi, Deputy Governor (Policy), Cardoso attributed the growth to sustained inflows and renewed investor participation across various asset classes.

“This accretion reflects investor confidence in our policies, leading to improved oil receipts, stronger balance of payments, and renewed foreign portfolio inflows,” Cardoso said.

He added that all three major international ratings agencies had upgraded Nigeria’s sovereign outlook, with S&P Global Ratings recently moving it from stable to positive, highlighting the impact of sustained economic reforms.

Cardoso also noted significant improvements in domestic economic indicators:

• Inflation has moderated to 16.05% as of October 2025, down from a peak of 34.6% in November 2024, marking seven consecutive months of disinflation.
• Core inflation has also begun to ease, reflecting the impact of tight monetary policy.
• The naira has stabilized, with the spread between the official and Bureau de Change rates below 2%, restoring confidence among investors and households.

He acknowledged the challenges faced by monetary authorities, including exchange rate volatility, structural imbalances, and external shocks such as geopolitical tensions and commodity price swings, describing them as realities that demand continuous reassessment of policy frameworks.

Speaking at the event, Dr. Christian Ebeke, IMF Resident Representative to Nigeria, commended the CBN’s turnaround, noting that the institution had successfully addressed a foreign exchange backlog that had previously threatened its credibility.

“When a central bank has an FX backlog, it really means it is about to default on FX applications. The CBN has come a long way from that situation,” Ebeke said, highlighting the positive impact of recent policy reforms.

The colloquium, themed “Monetary Policy in Nigeria: Past, Present, and Future,” provided an opportunity to review two decades of policy evolution, assess current economic realities, and anticipate future challenges and opportunities.