The Central Bank of Nigeria has announced a significant increase in the country’s gross external reserve, which now stands at $43 billion as of September 11, 2025. This was disclosed by CBN Governor Olayemi Cardoso after the 302nd meeting of the Monetary Policy Committee held in Abuja. The reserve has grown from $40.51 billion at the end of July 2025, providing an import cover of 8.28 months.
According to Cardoso, the current account balance for the second quarter of 2025 recorded a surplus of $5.28 billion, up from $2.85 billion in the first quarter. This development is seen as a positive indication of the country’s economic performance. Additionally, 14 Nigerian banks have fully met the new capital requirement introduced by the CBN as part of its ongoing recapitalization exercise.
The new minimum capital base requirement for banks varies depending on their license type, with commercial banks having different requirements based on their authorization level. For instance, commercial banks with international authorization are required to have a minimum capital of ₦500 billion, while those with national authorization need ₦200 billion. Merchant banks and non-interest banks also have specific capital requirements.
The recapitalization exercise is aimed at strengthening the banking sector and ensuring its stability. This is not the first time the CBN has undertaken such an exercise; in 2004, the bank raised the minimum capital requirement for all banks from ₦2 billion to ₦25 billion, leading to a significant consolidation in the sector. The current exercise is expected to have a similar impact, enhancing the banking sector’s ability to support the economy.
The CBN also announced a reduction in the Monetary Policy Rate by 50 basis points, from 27.5 percent to 27 percent. This move is intended to stimulate economic growth by making borrowing cheaper. The external reserve increase and the recapitalization of banks are key developments that will likely have a positive impact on Nigeria’s economy, making it more attractive to investors and supporting economic growth.
