Nigeria’s foreign reserves have skyrocketed to $40.08 billion as of November 7, 2024, marking the highest level in almost two years, according to the Central Bank of Nigeria (CBN).
This increase of $1.7 billion since September’s $38.3 billion reserves is largely attributed to the CBN’s policies promoting foreign currency inflows through formal channels and remittance-targeted reforms.
The CBN’s efforts to engage International Money Transfer Operators (IMTOs) and the Nigerian diaspora have played a important role in this recovery.
Earlier in 2024, reserves dropped below $34 billion due to foreign exchange pressures and global oil market volatility. However, sustained growth from $33.7 billion in June to the current $40.08 billion shows the CBN’s policy interventions to stabilize the naira and enhance foreign currency inflows has been successful.
Governor of the bank Olayemi Cardoso discussed the progress during a symposium in Abuja on Tuesday, saying the current reserves level is the highest in nearly three years. “These reforms have started yielding positive results, with notable improvements in the FX market and a stabilization of foreign reserves,” Cardoso noted.
Cardoso emphasized the importance of diaspora engagement at recent IMF and World Bank meetings in Washington, D.C., pointing to diaspora inflows as vital to Nigeria’s remittance recovery. He explained that engaging IMTOs helped identify and resolve issues, improving monthly inflows from $250 million in April to $600 million in September.
With the recent announcement by Nigeria Interbank Settlement Systems (NIBSS) on Bank Verification Number (BVN) and other banking industry products, Cardoso says he is confident that inflows will increase to $1 billion monthly. “We believe we will be able to move accordingly… and I’m confident we will get there,” he said.
Higher reserves boosts Nigeria’s economy and demonstrates the effectiveness of the CBN’s policies in promoting foreign investment and stabilizing the financial and hopefully the exchange market as well.
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