Nigeria’s economic outlook has undergone a remarkable turnaround in recent years, Central Bank of Nigeria (CBN) Deputy Governor for Economic Policy, Muhammad Sanni Abdullahi, revealed at a policy forum on Tuesday.
Abdullahi disclosed that before the Central Bank launched a wave of macroeconomic reforms in late 2023, Nigeria’s net foreign reserves had plummeted to a mere $800 million — a shockingly low figure for a nation with more than 200 million people. “What we were worth as an economy of over 200 million people was about $800 million in net reserves. Today, we’re at $32 billion,” he stated.
He attributed the low reserves to years of economic distortions such as poorly managed foreign exchange allocation and unsustainable petroleum subsidies. Together, these factors drained about six percent of Nigeria’s gross domestic product (GDP), undermining investor confidence and economic stability.
Abdullahi painted a picture of crisis in 2023, describing a government grappling with collapsing revenues, skyrocketing inflation, and a heavy $7 billion backlog owed to businesses and investors. “Foreign portfolio investment wasn’t coming in, FX flows were declining, and the nation simply could not absorb the mounting debts,” he explained.
The Deputy Governor highlighted that the multiple foreign exchange rates and the fuel subsidy scheme created opportunities for rent-seeking behavior and reduced investment, severely hurting the economy. “There was one exchange rate where the privileged segments accessed cheap FX, flipping it for profit, while non-oil exports and foreign direct investments dwindled,” Abdullahi said.
The reforms — often described as tough but necessary — have begun showing results. Inflation has dropped steadily for 19 months, food inflation is at a 13-year low, and portfolio investors now rank Nigeria as the top emerging market. Significantly, non-oil exports rose to roughly $6 billion in 2025, with prospects to double soon. “We have turned away from the imbalances we met and are on a strong footing toward a positive economic trajectory,” he concluded.
While acknowledging ongoing social challenges, Abdullahi underscored that Nigeria’s economy is shifting toward sustainable growth and renewed global investor confidence.
