CBN Governor, Olayemi Cardoso
Nigeria’s external reserves have risen by 58 per cent since Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria in September 2023, driven by stronger export earnings, increased portfolio investments, FX market reforms, lower fuel import bills and improving investor confidence, findings by THE PUNCH show.
Cardoso, who was appointed by President Bola Tinubu on 23 September 2023 and confirmed by the Senate on 28 September of the same year, inherited reserves of around $33.28bn. At the time, there were debates over the true level of the country’s net external reserves, with analysts questioning the actual liquidity available to the apex bank.
Since then, the reserve position has strengthened significantly. Presenting a communiqué at the end of the 306th meeting of the apex bank’s Monetary Policy Committee, Cardoso said Nigeria’s foreign exchange reserves have presently risen to $52.52bn.
The growth in external reserves has been supported by policy measures aimed at attracting foreign capital, improving transparency in the FX market and boosting confidence among investors. The rise has also been aided by increased inflows from exports and foreign portfolio investors, as well as reduced pressure on reserves following a decline in petrol importation after the removal of fuel subsidies and the ramp-up of local refining capacity.
