Nigeria’s $42.01bn External Reserves Can Finance Importations for 9 Months – CBN
The Central Bank of Nigeria (CBN) has revealed that the nation’s external reserves, now standing at $42.01 billion, are sufficient to finance the importation of goods and services for over nine months, exceeding international benchmarks.
CBN Governor, Mr. Olayemi Cardoso, shared the update on Wednesday in Abuja while presenting the bank’s performance index report to the Senate Committee on Banking, Insurance, and Other Financial Institutions.
“External reserves rose from $38.35 billion on September 30, 2024, to $42.01 billion as of December 12, 2024,” Cardoso stated.
He attributed the rise to revenues from crude oil-related taxes and third-party inflows during the third quarter of 2024.
“Our reserves can cover 9.09 months of goods and services imports or 13.91 months of goods-only imports, far surpassing the international benchmark of 3.0 months. This provides Nigeria with a strong buffer against external shocks,” he explained.
Addressing the issue of cash scarcity, Cardoso announced a new policy imposing a fine of ₦150 million on any bank branch found distributing new Naira notes illegally to currency hawkers or other unauthorized individuals.
Looking ahead to 2025, the CBN Governor expressed confidence in Nigeria’s economic recovery.
He highlighted several factors driving this optimism, including the stabilization of the forex market, recapitalization efforts in the banking sector, and growth in key sectors like services.
“Distinguished Senators, despite our economic challenges, the outlook for 2025 is positive,” Cardoso affirmed.
In response, Senator Adetokunbo Abiru (APC, Lagos East), chairman of the Senate Committee, praised the presentation, remarking that the CBN governor’s report was worthy of applause, even though formal clapping is not permitted in the Senate.
