CurrentReport Blog The Central Bank of Nigeria (CBN) has revealed that the country’s external reserves have risen to $42.01 billion, capable of financing over nine months of imports for goods and services. This announcement was made by CBN Governor Olayemi Cardoso during a presentation of the bank’s performance index report to the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday in Abuja.
External Reserves at Record High
Governor Cardoso noted that the external reserves increased from $38.35 billion on September 30, 2024, to $42.01 billion by December 12, 2024.
He attributed the growth to:
- Crude oil-related tax receipts
- Third-party inflows recorded in the third quarter of 2024
- Improvements in trade balance and a current account surplus
“Our external reserves can finance over 9.09 months of imports of goods and services or 13.91 months of goods alone, surpassing the international benchmark of three months,” Cardoso explained.
The robust reserve level provides a buffer against economic shocks and reinforces Nigeria’s financial stability.
Measures to Curb Cash Shortage
Addressing cash shortage concerns, the CBN governor reaffirmed the enforcement of a N150 million fine on bank branches caught engaging in the illegal distribution of new naira notes. This policy is part of ongoing efforts to restore public confidence in the financial system.
Positive Economic Outlook for 2025
Cardoso expressed optimism about Nigeria’s economic recovery in 2025, citing:
- Stabilization of the forex market
- Banking sector recapitalization
- Positive growth trends in key sectors, particularly services
“Despite the challenges, these trends signal a path toward recovery and stability for Nigeria’s economy in 2025,” Cardoso stated.
Senate Commends CBN’s Efforts
Senator Adetokunbo Abiru, chairman of the Senate Committee on Banking, commended the CBN’s proactive measures and noted that the presentation highlighted a promising direction for the nation’s economic future.
Key Takeaways
- Nigeria’s external reserves reached $42.01 billion by December 2024, enough to finance over 9 months of imports.
- Increased reserves are linked to crude oil tax receipts and trade balance improvements.
- The CBN imposed strict penalties to curb illegal cash distribution.
- Economic stability and growth are projected for 2025, driven by forex reforms and sectoral growth.
