FX reforms, oil inflows push reserves above $54bn

In recent months, Nigerian foreign reserves have surged above $54 billion under the stewardship of Central Bank of Nigeria Governor Olayemi Cardoso, according to JUSTICE OKAMGBA. This significant increase of more than $21 billion since Cardoso became Governor can be attributed to several factors, including a broader Foreign Exchange (FX) market overhaul, stronger foreign-currency inflows, and tighter monetary policy.

While the Central Bank of Nigeria (CBN) has played a pivotal role in implementing these reforms, the reserve growth cannot be solely attributed to them. Other factors, such as oil earnings and exports, money sent back by Nigerians abroad, foreign investments, external borrowing, and government transactions, also contribute to Nigeria's foreign currency reserves.