The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has confirmed that Nigeria’s external reserves, which have reached $42.01 billion, are sufficient to finance the country’s imports for over nine months in 2025. This news comes as a positive indicator for the nation’s economic resilience, amid ongoing efforts to stabilize the economy.
During a performance index report presentation to the Senate Committee on Banking, Insurance, and other Financial Institutions on Wednesday, Cardoso reassured Nigerians of an improved economic outlook for 2025. He highlighted that the growth in external reserves, up from $38.35 billion in September 2024, was driven by increased receipts from crude oil-related taxes and third-party receipts.
The CBN Governor emphasized that the reserves, which currently cover 9.09 months of imports, far exceed the international benchmark of three months, providing a robust buffer against external shocks. “This marks a positive trajectory for our economic stability,” Cardoso stated, noting the improvement in Nigeria’s trade balance and the country’s current account surplus.
In addition to external reserves growth, Cardoso outlined new initiatives aimed at further stabilizing the economy, including policy measures to promote the use of electronic payment channels. These measures are part of the CBN’s broader strategy to advance a cashless economy, combat fraud, and ensure uniform operational standards across the banking sector.
On the subject of the country’s foreign exchange situation, Cardoso pointed to a significant rise in diaspora remittances, which totaled $4.22 billion from January to October 2024, a 61.1% increase compared to the same period in 2023. He attributed this growth to improvements in remittance processes and positive policies under President Bola Tinubu’s administration, noting that remittance inflows are expected to continue increasing by the end of the year.
However, the Senate Committee raised concerns about the ongoing high-interest-rate environment, urging the CBN to consider its impact on economic productivity and access to credit. Committee Chairman Tokunbo Abiru expressed concerns over rising inflation and its impact on overall economic activity, calling for targeted interventions to support small and medium-sized enterprises (SMEs) and further synchronization of monetary and fiscal policies.
The CBN was also urged to address ongoing challenges in the banking sector, such as cash shortages, ATM accessibility issues, excessive bank charges, and the circulation of mutilated Naira notes. Abiru also highlighted the need for the CBN to clear outstanding foreign exchange forward contracts, which have caused significant concerns among businesses.
Meanwhile, in a move to enhance the efficiency of agent banking, the CBN introduced new policies to limit cash withdrawals and ensure that transactions are conducted through regulated channels. These measures are designed to streamline electronic payments and ensure better oversight of the growing agency banking sector, which has seen an increase in popularity as part of the push towards a cashless economy.
The new regulations stipulate that the cash withdrawal limit for customers via agent banks will be capped at N500,000 per week, with individual agent terminals limited to a daily maximum of N100,000. The CBN has also mandated that all transactions be electronically reported to the Nigerian Interbank Settlement System (NIBSS) for greater transparency.
As the CBN moves forward with these policy interventions, Cardoso reassured the public that Nigeria’s economic outlook for 2025 is optimistic, with the central bank’s continued efforts aimed at stabilizing the forex market, improving banking sector capitalization, and fostering growth in key economic sectors.