The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced that Nigeria's external reserves have reached an impressive $42.01 billion.
This substantial reserve level is projected to finance the importation of goods and services for over nine months, providing a robust buffer against economic shocks. Governor Cardoso highlighted the increase in reserves from $38.35 billion at the end of September 2024 to the current $42.01 billion as of December 12, 2024.
He attributed this growth primarily to receipts from crude oil-related taxes and third-party transactions during the third quarter of 2024. "Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months," Cardoso stated, emphasizing the strength of Nigeria's financial position.
The CBN Governor also addressed concerns about cash shortages, reiterating the implementation of a new policy imposing a N150 million fine on any bank branch found distributing new Naira notes illegally. He assured that these measures, along with ongoing banking sector recapitalization and positive growth trends in key sectors, particularly the services sector, indicate a path toward economic recovery and stability in 2025.
Despite the challenges facing the Nigerian economy, Cardoso expressed optimism about the future, citing the gradual stabilization of the forex market and improvements in the trade balance. "There are clear reasons for optimism," he said, assuring Nigerians of better economic fortunes in the coming fiscal year.
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