The Central Bank of Nigeria (CBN) has announced that the country’s external reserves, now at $42.01 billion, can finance the importation of goods and services for over nine months.
The apex bank also assured Nigerians of improved economic prospects in 2025.
CBN governor, Mr. Olayemi Cardoso, disclosed this on Wednesday in Abuja during the presentation of the performance index report to the Senate Committee on Banking, Insurance, and Other Financial Institutions.
According to Mr. Cardoso, “External reserves rose from $38.35 billion on September 30, 2024, to $42.01 billion as of December 12, 2024.”
He explained that the increase in external reserves during the period was primarily driven by receipts from crude oil-related taxes and third-party inflows in Q3 2024.
“We maintained a current account surplus and saw remarkable improvements in our trade balance.
“Our external reserves level can finance over 9.09 months of the importation of goods and services or 13.91 months of goods only.
“This is significantly higher than the international benchmark of 3.0 months, providing a robust buffer against economic shocks,” he said.
Addressing cash shortages, the CBN governor reiterated the implementation of a new policy imposing a fine of N150 million on any bank branch caught distributing new Naira notes illegally to currency hawkers or other unscrupulous elements.
He further stated that Nigeria’s economy is expected to improve significantly in the 2025 fiscal year through policies and measures already in place.
“Distinguished Senators, as we conclude this briefing, I want to highlight that despite the challenges facing our economy, there are clear reasons for optimism.
“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability,” he said.
Impressed by the presentation, the chairman of the Senate Committee, Senator Adetokunbo Abiru (APC, Lagos East), remarked that Cardoso deserved a round of applause even though such gestures were not permitted in the Senate.