The Central Bank of Nigeria (CBN) has announced that Nigeria external reserves have climbed to approximately $52 billion, while the country’s net external reserves have exceeded $40 billion, marking a significant improvement attributed to ongoing economic reforms. CBN Governor Mr. Olayemi Cardoso disclosed the figures during a fireside discussion with BusinessDay Chief Executive Officer, Mr. Frank Aigbogun, where he highlighted the impact of monetary reforms on investor confidence and financial stability.
Cardoso said recent policy reforms have transformed Nigeria’s foreign exchange market by eliminating multiple exchange rate windows and improving market transparency. According to him, the country has moved away from a fragmented foreign exchange system characterised by uncertainty to a more unified and stable framework.
“The numbers speak for themselves,” the CBN Governor said.
“As of yesterday, we were hovering at about $52 billion in reserves. When we started, net reserves were around $3 billion. Today, they are in the $40 billion range.” He described the progress as the result of a major policy shift at the Central Bank, adding that the reforms required difficult but necessary decisions.
Cardoso said the improving macroeconomic environment is attracting increasing attention from international investors. According to him, sustained policy consistency and market stability have encouraged stronger engagement with Nigeria’s economy, with some investment commitments already materialising. He urged Nigerian business leaders not to overlook the opportunities emerging from the country’s improving investment climate.
“They should not assume things remain the way they used to be. Waiting too long could mean missing valuable opportunities,” he cautioned.
The CBN Governor also expressed confidence that the ongoing banking recapitalisation programme will position financial institutions to play a greater role in financing economic growth.
Responding to concerns that banks currently prefer investing in government securities rather than lending to businesses, Cardoso acknowledged that the trend may persist in the short term but expects it to change as economic conditions improve. He explained that strengthening banks’ capital base was necessary to improve their resilience against economic shocks and ensure long-term financial stability.
“Our banks already play leading roles across Africa, and stronger capital positions will enable them to continue supporting economic growth while remaining resilient,” he said.
Cardoso stressed that raising capital alone would not be enough, noting that the CBN will continue close regulatory supervision of financial institutions. According to him, sustained oversight is essential to maintaining a stable banking sector capable of supporting businesses, particularly small and medium-sized enterprises (SMEs). He added that as economic reforms continue to take effect, inflation and interest rates are expected to moderate, creating a more favourable business environment.
The CBN Governor said many banks are already strengthening their capacity to expand lending to productive sectors, positioning them to support Nigeria’s next phase of economic development. He maintained that the combination of stronger Nigeria external reserves, improved investor confidence and a well-capitalised banking system provides a solid foundation for sustained economic growth.
