Nigeria’s foreign reserve has reached a significant milestone, surpassing $46 billion, according to the Central Bank of Nigeria’s Governor, Yemi Cardoso. This development was disclosed by the Deputy Governor, Economic Policy Directorate, Dr. Muhammad Abdullahi, at the Monetary Policy Department’s 20th anniversary colloquium in Abuja. The last time the country’s foreign reserve reached this level was in 2018, and it is now sufficient to cover over 10 months of imports.
The increase in foreign reserves can be attributed to the federal government’s Eurobond issuance and rising foreign exchange inflows. October 2025 marked the country’s strongest month for foreign exchange inflows since May, with improved macroeconomic stability and renewed interest from offshore investors contributing to this growth. However, Foreign Direct Investment (FDI) inflows declined by 25 percent month-on-month to $222 million, highlighting the persistent structural challenges that deter long-term capital, such as insecurity and policy uncertainty.
The naira’s performance in the foreign exchange market has been relatively stable, with a marginal depreciation of 0.4 percent against the dollar at the Nigerian Foreign Exchange Market (NFEM). In contrast, the naira gained slightly in the parallel market, closing at N1,455 on Monday. The Central Bank of Nigeria’s data indicates that the country’s external reserves have reached $46.7 billion, a development that may lead to a decline in lending rates in the coming months as inflation continues to ease.
This easing of inflation is expected to improve access to credit and strengthen investment flows, which could have a positive impact on the country’s economy. The increase in foreign reserves and the subsequent decline in lending rates may also attract more foreign investors, contributing to the country’s economic growth. As Nigeria continues to navigate its economic challenges, the growth in foreign reserves and the potential decline in lending rates are significant developments that warrant close attention.
