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CBN Governor Olayemi Cardoso says the country’s external reserves have reached their highest level in more than 18 years, strengthening Nigeria’s external position

Nigeria’s foreign exchange reserves have crossed the $55 billion mark, reaching their highest level in more than 18 years, according to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso.

Cardoso disclosed the development while discussing recent developments in Nigeria’s monetary and financial sector, highlighting the increase in the country’s external reserves as one of the key indicators of changing conditions in the economy.

The foreign reserves are an important component of Nigeria’s external financial position, providing a buffer that can support the country’s ability to meet international payment obligations and respond to pressures in the foreign exchange market.

The reported increase also comes amid ongoing monetary and foreign exchange reforms by the CBN, including measures aimed at improving the functioning and transparency of the foreign exchange market.

Cardoso has previously said that strengthening Nigeria’s external reserves and improving liquidity in the foreign exchange market remain important components of the central bank’s efforts to promote monetary and financial stability.

The rise in reserves is also significant for the naira and the broader economy because the level of external reserves can influence market confidence and the CBN’s capacity to manage external shocks.

Nigeria’s foreign reserves are influenced by several factors, including crude oil and other export earnings, foreign investment inflows, external borrowing and debt-service obligations, as well as movements in the foreign exchange market.

The latest figure represents a notable increase from periods when Nigeria’s reserves came under pressure from lower oil revenues, foreign exchange shortages and other economic challenges.

Cardoso’s disclosure comes as the Federal Government and the CBN continue to implement economic and monetary reforms aimed at strengthening Nigeria’s macroeconomic fundamentals.

The governor said the increase in reserves reflects progress in Nigeria’s external position, although the broader economic impact will continue to depend on factors including inflation, exchange-rate stability, oil production and global economic conditions.