Nigeria’s foreign reserves reached $40.08 billion on November 7, 2024, marking the highest level seen in nearly two years, according to data from the Central Bank of Nigeria (CBN). This milestone reflects a significant gain for Nigeria, driven largely by targeted reforms to bolster foreign currency inflows.
Since the end of September, when reserves stood at $38.3 billion, a steady increase has resulted in a $1.7 billion rise by early November. Earlier in 2024, reserves had dipped below $34 billion due to foreign exchange pressures and volatility in the global oil market. However, the recent growth underscores the impact of the CBN’s foreign currency policies, aimed at stabilizing the naira and encouraging formal foreign exchange inflows.
Key to this recovery has been the CBN’s initiatives targeting remittance inflows from Nigeria’s diaspora and the collaboration with International Money Transfer Operators (IMTOs). The bank’s remittance-focused policies and reforms, coupled with heightened engagement with IMTOs, have significantly improved foreign exchange inflows, helping to stabilize the naira and restore reserve levels.
At a recent symposium in Abuja, CBN Governor Olayemi Cardoso emphasized the positive impact of these measures, noting that this reserve level is the highest in almost three years. “These reforms have started yielding positive results, with notable improvements in the FX market and a stabilisation of foreign reserves,” Cardoso said.
He further explained the CBN’s continued engagement with Nigeria’s diaspora community. During the IMF and World Bank meetings in Washington, D.C., Cardoso highlighted the role of diaspora remittances, noting how recent improvements in foreign transfer processes have positively impacted Nigeria’s foreign exchange inflows.
As a result of the CBN’s strategic engagement and policy adjustments, monthly remittance inflows rose significantly—from around $250 million in April to $600 million in September. The CBN is optimistic about increasing this figure to $1 billion per month with continued efforts, including support from the Nigeria Interbank Settlement Systems (NIBSS) through initiatives like the Bank Verification Number (BVN) policy.
With these proactive steps, the CBN reaffirms its commitment to strengthening Nigeria’s foreign reserves, stabilizing the currency, and fostering a resilient economy.