Cardoso says Nigeria’s net FX reserves jump to $40bn on reforms

Nigeria’s foreign exchange buffers have strengthened sharply since the current administration’s economic reforms began, with net reserves increasing to about $40 billion from roughly $3 billion, according to Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN).

Speaking at the BusinessDay CEO Forum in Lagos, Cardoso said the rebound in net reserves reflects renewed confidence in Nigeria’s economy and the effectiveness of reforms aimed at stabilising the foreign exchange market.

He added that the country’s gross external reserves stood at about $52 billion as of Wednesday.

“When we started, the net exchange reserves figure was in the region of about $3 billion-plus. And if you remember, that was a figure that was published at the time by J.P. Morgan and created a lot of panic in the system,” he said.

According to him, the recovery in net reserves underscores the impact of the reforms undertaken to restore confidence in the economy and strengthen the country’s external position.

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“So, in a nutshell, I do believe that where we are now, we’ve achieved that hard-earned stability, and with stability comes potential for investment, and with investment comes growth, and all our local CEOs should be part and parcel of that train that is moving,” Cardoso said.

He urged Nigerian business leaders to take advantage of the improved macroeconomic stability and participate actively in the next phase of the country’s economic growth.

Cardoso said the restoration of stability was not an end in itself but a foundation for increased investment, economic expansion and broader prosperity.

The CBN governor’s comments came as Nigeria continues to rebuild its external reserves and improve liquidity in the foreign exchange market following reforms aimed at addressing distortions in the FX market.

He said the progress made so far should create greater confidence for businesses and investors to commit capital to the Nigerian economy.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.