The Central Bank of Nigeria has announced that the country’s external reserves of $42.01 billion can finance the importation of goods and services for more than nine months in 2025. Governor Olayemi Cardoso assured Nigerians of better economic fortunes during a presentation to the Senate Committee on Banking, Insurance, and other Financial Institutions.
The increase in external reserves was driven by receipts from crude oil related taxes and third-party receipts in the third quarter of 2024. Cardoso emphasized that the current account surplus and improved trade balance have strengthened the country’s financial position.
To combat cash shortages, the CBN will impose a N150 million fine on banks caught illegally distributing new naira notes. The governor also highlighted positive economic indicators, including stabilizing forex markets, growth in key sectors, and increased diaspora remittances.
However, the Senate Committee urged the CBN to consider the impact of interest rate hikes on economic productivity and inflation. They recommended targeted interventions to support small and medium enterprises and called for better coordination between monetary and fiscal policies.
Concerns were also raised over cash scarcity, dirty banknotes in circulation, excessive charges, and failed online transactions. The committee urged the CBN to clear outstanding foreign exchange forward contracts to support businesses of all sizes.
Cardoso reaffirmed the CBN’s determination to ensure greater cash availability for customers at official outlets, addressing a critical concern for many Nigerians. He expressed optimism about a positive economic outlook for the first half of 2025, citing key indicators of recovery.
“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in essential sectors, especially services, indicate a path toward recovery and stability,” Cardoso stated. He also assured that the CBN would closely monitor economic developments and adjust policies as needed to maintain price and exchange rate stability, fostering sustainable economic growth.
He said, “We maintained a current account surplus and saw remarkable improvements in our trade balance .
“Our external reserves level can finance over 9.09months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks.”
Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee, commended the CBN for its efforts in ensuring stability in the forex market, enhancing liquidity, and reducing market distortions. His remarks came during the CBN’s statutory briefing, where he acknowledged the significant strides made under Cardoso’s leadership.
