Nigeria’s foreign reserves have crossed the $46 billion mark, a milestone not seen since 2018, according to Central Bank Governor Yemi Cardoso. The announcement was made by Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, during the Monetary Policy Department’s 20th‑anniversary colloquium in Abuja. At this level, the reserves can cover more than ten months of imports.
The rise in reserves stems from the federal government’s Eurobond issuance and increased foreign‑exchange inflows. October 2025 recorded the strongest inflow month since May, driven by improved macro‑economic stability and renewed interest from offshore investors. However, foreign‑direct investment fell 25 percent month‑on‑month to $222 million, underscoring persistent structural challenges such as insecurity and policy uncertainty that deter long‑term capital.
The naira has remained relatively stable in the official foreign‑exchange market, depreciating only 0.4 percent against the dollar at the Nigerian Foreign Exchange Market (NFEM). In the parallel market, the currency edged higher, closing at N1,455 on Monday.
Central Bank data show external reserves now total $46.7 billion, a development that could prompt a decline in lending rates in the coming months as inflation eases. Lower inflation is expected to improve credit access and boost investment flows, potentially attracting more foreign investors and supporting economic growth. As Nigeria continues to navigate its economic challenges, the expansion of foreign reserves and the prospect of reduced lending rates are significant trends that merit close attention.
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