Nigeria’s Central Bank Governor, Yemi Cardoso has described the recent surge in the nation’s external reserve as a product of deliberate monetary and fiscal policies of the federal government.
The CBN governor said it’s not as a result of external borrowing that the foreign reserve have increased in recent months, particularly after the firmed at close to $47 billion at the end of October.
Cardoso, stated this on Friday at the Chartered Institute of Bankers of Nigeria, CIBN, Annual Bankers’ Dinner, while commenting on the heath of the economy, as well as the impacts of the ongoing fiscal and monetary reforms of the Tinubu administration.
According to him, the nation’s external reserve, in the past had been a product of external borrowing, but the figure which currently stands at $46.7 billion, was drive by stronger market fundamentals, improved policy credibility and sustained reforms, noting that the Reserve has strengthened in the second and first quarter of 2025. .
He explained that the nation’s current account balance rose by more than 85 per cent to US$5.28 billion in the second quarter of 2025, up from $2.85 billion in the first quarter, strengthening the external sector and boosting confidence.
“Our foreign reserves reaching $46.7 billion by mid-November, providing over 10 months of import cover, is a clear indication of resilience. What is most important is that our FX reserves are being rebuilt organically, not by borrowing, but through improved market functioning, stronger non-oil exports and robust capital inflows,” Cardoso said.
The magazine’s checks indicate that Nigeria’s forex reserve stood at $34 billion when President Bola Ahmed Tinubu came to office in 2023.
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