Nigeria records $40bn net FX reserves amid reforms — CBN

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the country’s net foreign exchange reserves have increased from about $3 billion at the start of the current economic reforms to approximately $40 billion, reflecting stronger external liquidity and renewed investor confidence.

Cardoso disclosed this on Thursday at the BusinessDay CEO Forum in Lagos, where he said the improvement signalled significant progress in restoring stability to Nigeria’s foreign exchange market.

He also revealed that the country’s gross external reserves had risen to about $52 billion as of Wednesday.

According to the CBN governor, the sharp increase in net reserves demonstrates the positive impact of the reforms introduced to strengthen the economy and improve confidence in the foreign exchange market.

“When we started, the net exchange reserves figure was in the region of about $3 billion-plus. And if you remember, that was a figure that was published at the time by J.P. Morgan and created a lot of panic in the system,” Cardoso said.

He noted that restoring macroeconomic stability was laying the foundation for increased investment, sustainable economic growth and greater prosperity.

Cardoso urged business leaders to take advantage of the improved economic environment by expanding investments and positioning their businesses for future growth.

He said the ongoing reforms were designed not only to stabilise the economy but also to create an enabling environment for local and foreign investors.

The CBN governor expressed confidence that the gains recorded so far would encourage more capital inflows and strengthen Nigeria’s economic outlook.

“In a nutshell, I do believe that where we are now, we’ve achieved that hard-earned stability, and with stability comes potential for investment, and with investment comes growth. All our local CEOs should be part and parcel of that train that is moving,” he said.