Nigeria’s foreign reserves have climbed to $46.7 billion, the highest level since 2018, driven by renewed investor confidence, improved oil receipts and stronger balance-of-payments inflows, the Central Bank of Nigeria said on Tuesday.
CBN Governor, Olayemi Cardoso, represented by the Deputy Governor in charge of Economic Policy, Dr Muhammad Abdullahi, disclosed this in Abuja at the 20th Anniversary of the Monetary Policy Department (MPD).
Cardoso said the latest reserve position, recorded on November 14, 2025, provides 10.3 months of import cover, describing it as a major milestone in the Bank’s reform programme. “Foreign reserves have risen to $46.7 billion… supported by sustained inflows and renewed investor participation across various asset classes,” he said.
He linked the sharp rise to stronger portfolio inflows, improved oil receipts, and policies that have stabilised the foreign exchange market. According to him, the naira has continued to firm up, while the spread between the official and Bureau-de-Change segments has narrowed to below two per cent — a development he said reflects restored confidence.
Cardoso noted that inflationary pressures were also easing. Headline inflation slowed to 16.05% in October 2025, down from 34.6% in November 2024. He described the decline as “seven consecutive months of disinflation” and “the lowest in three years”, adding that core inflation had also begun to soften.
Reforms, trust and improved global ratings
The CBN governor said recent reforms had reshaped investor sentiment and strengthened Nigeria’s macroeconomic outlook. “All the three top international ratings agencies upgraded Nigeria,” he said, citing S&P Global Ratings’ revision of the country’s outlook from stable to positive. He added that Nigeria’s removal from the FATF Grey List marked another step in restoring credibility within the international financial system, opening doors to improved trade finance and investment flows.
According to him, the combined effect of rising reserves, a stronger naira, slowing inflation and better ratings has created “a more competitive currency, improved trade balances, and a stronger foundation for inclusive development.”
Cardoso used the anniversary to highlight the MPD’s central role in monetary-policy evolution over two decades. He credited the department with major reforms, including the introduction of the Monetary Policy Rate in 2006, the interest-rate corridor system, enhanced policy communication and the national shift toward an inflation-targeting monetary framework.
However, he emphasised that future challenges remained significant, noting ongoing global shocks, commodity-price swings and structural imbalances. “The Department must remain agile and forward-looking,” he said, urging deeper analytical capacity, improved modelling tools and greater use of technology and big data to strengthen policy decisions.
He stressed that transitioning to a full inflation-targeting regime was one of the Bank’s most important tasks. “Inflation targeting will enhance transparency, improve credibility, and strengthen the effectiveness of monetary policy transmission,” he said.
What you should know
Nigeria’s reserve surge comes less than two weeks after the Federal Government raised funds from international markets in its latest dual-tranche Eurobond issuance.
Nairametrics earlier reported that Nigeria achieved a major milestone in its return to the international capital markets, successfully raising $2.35 billion through Eurobonds issuance that drew an unprecedented $13 billion in investor orders — the largest-ever orderbook in the nation’s history.
The Debt Management Office (DMO), in a statement, described the issuance as a landmark success that demonstrates global investor confidence in Nigeria’s economic reforms, fiscal discipline, and long-term growth trajectory.
