Nigeria’s net foreign reserves rise to record $46 billion

Nigeria's Central Bank Governor Olayemi Cardoso announced on Thursday that the country's net foreign reserves have reached a record $46 billion. Speaking at the Nigeria-Asia Connectivity Dialogue, Cardoso highlighted that the stability in the foreign exchange market is bolstering investor confidence, enabling them to invest more in Nigeria and repatriate their earnings.

This surge in reserves represents a significant improvement from the $3 billion net foreign reserves recorded in 2023. The gross foreign reserves, including both external and domestic sources, have also hit an all-time high of $55 billion, exceeding the Central Bank of Nigeria's earlier projection of $51.04 billion by the end of 2026.

The increase in reserves has strengthened Nigeria's external liquidity position and provided the CBN with additional resources to manage foreign exchange pressures. The naira has been trading around N1,330/$ in recent sessions, reflecting the improved stability in the official foreign exchange market. The World Bank recently upgraded Nigeria's 2026 growth forecast to 4.3%, up from 4.0% in 2025, with projections of 4.4% growth in both 2027 and 2028.

In response, the CBN reduced the Monetary Policy Rate (MPR) by 350 basis points to 23% from 26.5% in a recent meeting. The committee also recalibrated the asymmetric corridor around the MPR to +50/-300 basis points, aiming to enhance the effectiveness of monetary policy without altering the current stance.