Nigeria’s Central Bank Governor, Olayemi Cardoso, has clarified that the country’s USD 46.7 billion foreign exchange reserves were accumulated through genuine inflows and market reforms, not borrowing. His remarks address widespread speculation about reserve composition and signal renewed transparency around Nigeria’s monetary policy framework.
According to Cardoso, recent improvements in FX reserves have been driven by reforms aimed at restoring investor confidence, stabilizing the currency market, and strengthening Nigeria’s external position. These include tighter monetary policy actions, market liberalization measures, and efforts to reduce distortions in the FX system.
The governor emphasized that the reserves reflect “real flows coming into the country,” underscoring progress made in rebuilding credibility with international investors. The clarification also aligns with Nigeria’s broader goal of creating a more transparent, rules-based FX environment after years of volatility and intervention-driven pressures.
Despite these gains, Cardoso noted that Nigeria still faces structural challenges, including import dependence, oil revenue fluctuations, and sensitivity to global commodity cycles. Sustained reforms will be essential to strengthen the quality and durability of reserve buffers.
For investors, the message is clear: Nigeria is attempting to reposition itself as a more predictable and investable macro environment, supported by cleaner reserve data and improving policy discipline. The stronger external buffers help reduce short-term currency risk, support portfolio inflows, and signal that Nigeria is committed to long-term stabilization rather than temporary fixes.
