Nigeria’s foreign reserves have officially crossed the $55 billion mark, hitting their highest level in over 18 years, according to Central Bank of Nigeria (CBN) Governor Olayemi Cardoso.
Cardoso made the announcement at a press briefing in Abuja following the 307th meeting of the Monetary Policy Committee (MPC). He attributed the historic milestone to disciplined monetary management and strong contributions from the diaspora.
“We have been able to rebuild our reserves. We know that today, the reserves have crossed US$ 55 billion – the highest number in over 18 years. That’s a big thing. It’s come through consistency and discipline in approach. In addition to that is the whole issue of diaspora contributions,” Cardoso stated.
Reflecting on structural shifts in the FX ecosystem, Cardoso contrasted current stability with the former regime of multiple exchange rates. He noted that the old system fostered severe distortions where access depended on personal connections rather than market fundamentals.
According to the CBN governor, closing the rate gaps has eliminated backdoor leakages, noting that past FX subsidies and market distortions previously cost the nation staggering losses amounting to roughly 2.2 per cent of GDP.
During the same meeting, the MPC implemented a significant operational reset by recalibrating the asymmetric corridor around the Monetary Policy Rate (MPR) to plus 50 / minus 300 basis points, alongside a 350 basis point reduction in the MPR to 23 per cent (down from 26.5 per cent).
Cardoso emphasised that the corridor adjustment was an operational tweak to enhance monetary policy transmission and aid the transition toward an inflation-targeting framework, rather than an abrupt shift in the core policy stance.
Meanwhile, Cash Reserve Requirements (CRR) remain unchanged at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
The new $55 billion reserve milestone comfortably surpasses the CBN’s initial projection of $51.04 billion for the entirety of 2026, signaling strong external buffers amid broader economic reforms.
