Nigeria Net Foreign Reserves Hit $49B in Liquidity Turnaround

The Central Bank of Nigeria (CBN) has achieved a significant recovery in external reserves, providing a critical buffer to stabilize the Naira amid evolving fiscal reforms.

ABUJA — The Central Bank of Nigeria (CBN) has signaled a major stabilization in the nation's external balance sheet, with Governor Olayemi Cardoso confirming that net foreign reserves have climbed to $49 billion. This represents a dramatic recovery from the critical lows of approximately $3 billion recorded in May 2023, marking a pivotal shift in the country's FX liquidity profile.

FX Liquidity and Market Stability

• Net Foreign Reserves: $49 billion
• Export Revenue 2025: Over $500 million
• Historical Low (May 2023): $3 billion
• World Bank Grant Revision: $6.80 million (from $10.50 million)

Trade and Fiscal Adjustments

Supporting the reserve accumulation, the Federal Ministry of Industry, Trade and Investment reported over $500 million in export revenue for 2025. This data points to the early success of diversification strategies aimed at reducing reliance on crude oil volatility. However, the World Bank has revised its planned grant to the CBN downward.

Strategic Shift: Investment Budgeting

The Federal Government, under its Domestic Growth Acceleration Strategy (DGAS), is pivoting toward investment budgeting. This policy shift aims to transition the states role to an enabler of private-sector-led growth, reducing long-term Fed-style central bank financing.