Nigeria’s gross external reserves expanded by $1.03 billion in the last 30 days, according to data from the Central Bank of Nigeria (CBN).
This represents a 2.51 per cent increase to $42.03 billion as of September 19 from $41 billion as of August 19.
A review of the CBN data shows that this is the first time external reserves have hit that height in the last six years, precisely since September 26, 2019.
The apex bank had embarked on dogged reforms to improve the country’s reserve buffers.
Pinnacle Daily reports that the external reserves hit the $40 billion mark on November 6, 2024, and went back to $30 billion on January 23 of this year before climbing back to the $40 billion mark on August 7, last month.
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A cursory look at the data indicated that external reserves have grown consistently in the period under review.
Pinnacle Daily reported earlier this month that the apex bank, under the leadership of Olayemi Cardoso, implemented several key reforms to boost remittance inflows into the country.
These reforms are significantly impacting the country’s economy as CBN aims to maintain economic stability and further strengthen the naira.
Notable among the reforms is the Non-Resident Bank Verification Number initiative aimed at encouraging Nigerians abroad to channel funds through official banking channels.
Monthly diaspora remittances surged to $600 million in August, marking a 200 per cent increase from the previous month.
According to the Chairman of the Nigerians in Diaspora Commission, Abike Dabiri-Erewa, the increase reflected renewed confidence in the Nigerian economy and recent CBN policy reforms.
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The CBN expects the reforms to increase remittances to over $1 billion per month by 2026.
It has further collaborated with the Manufacturers Association of Nigeria (MAN) to diversify the country’s foreign exchange earnings away from oil.
The collaboration is focused on enhancing non-oil exports and improving Nigeria’s foreign exchange reserves to ensure long-term economic stability.
The partnership is part of the CBN’s broader efforts to stabilise the naira and reduce the nation’s reliance on oil revenues, Pinnacle Daily reported.
The efforts have already shown results, as the naira has appreciated in recent times.
The appreciation is linked to the CBN’s market interventions, including increased foreign exchange liquidity and enhanced market efficiency.
The Nigerian currency surged to a five-month high of N1,497.5 to a dollar on September 15 in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The appreciation was supported by better foreign exchange (FX) liquidity and less demand pressure and has remained below the N1,500 mark.
On Monday, September 22, the naira closed at ₦1,488.60 against the dollar at the official market.
At the black market, known as the parallel market, it closes at an average of N1,517 to the dollar.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
