Nigeria's net FX reserves rise from $3bn to $40bn, Central Bank Governor

Nigeria's net foreign exchange reserves have seen a dramatic increase, climbing to approximately $40 billion from just over $3 billion at the beginning of the current economic reform period, Central Bank Governor Olayemi Cardoso announced.

Cardoso revealed this significant rise at the BusinessDay CEO Forum in Lagos, highlighting that the country's gross external reserves stood at about $52 billion as of Wednesday. He noted that the initial $3 billion figure, widely reported, had caused considerable public concern. The recovery in reserves is presented as a direct outcome of reforms aimed at restoring confidence in the Nigerian economy and bolstering its external financial position.

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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.

"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," Cardoso stated. He urged business leaders to capitalize on the improved macroeconomic climate to position themselves for future economic expansion.

The CBN governor stressed that the stabilization of the FX market is not an end goal but a crucial platform for attracting investment, fostering economic growth, and ultimately creating prosperity for Nigerians. He expressed optimism that the progress would encourage greater capital commitment from both domestic and international investors.

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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.