The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has said the country's external reserves, estimated at $42.01 billion, are sufficient to finance imports of goods and services for over nine months .
While presenting the performance index report before the Senate Committee on Banking, Insurance and Other Financial Institutions, Mr. Cardoso assured Nigerians of an improving economic outlook for 2025.
He explained that the country's external reserves increased from $38.35 billion on September 30, 2024 to $42.01 billion on December 12, 2024. Enough to finance imports over nine months.
This increase is mainly attributed to revenues from crude oil-related taxes and third-party payments during the third quarter of 2024.
“We have maintained a current account surplus and seen remarkable improvements in our trade balance.
(…) The level of our external reserves can finance more than 9.09 months of imports of goods and services, or 13.91 months only, well above the international benchmark of 3.0 months, which constitutes a solid buffer against shocks,” he said.
Despite the challenges facing the Nigerian economy, Mr. Cardoso expressed optimism for a brighter future.
“The gradual stabilization of the foreign exchange market, the ongoing recapitalization of the banking sector, as well as positive growth trends in key sectors, notably services, indicate a path towards recovery and stability,” reports the Vanguard newspaper.
GIK/lb/Sf/te/APA
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