By Staff Reporter
Nigeria’s foreign exchange reserves have climbed to $51.03 billion, reaching their highest level in more than 17 years and signaling renewed confidence in the country’s external sector under the leadership of Central Bank of Nigeria (CBN) Governor Olayemi Cardoso.
Latest data obtained from the CBN showed that the reserves rose to $51.03 billion on June 18, surpassing levels recorded at any time since January 20, 2009, when the nation’s external reserves stood at $51.07 billion.
The development marks a significant milestone for Africa’s largest economy, reflecting improvements in foreign exchange inflows, diaspora remittances, and ongoing monetary reforms aimed at stabilizing the naira and strengthening investor confidence.
The reserves grew steadily by approximately 3.76 per cent, or $1.85 billion, from $49.18 billion recorded on April 1, the beginning of the second quarter, to the current level.
The latest figure is also the highest reserve position recorded since the beginning of the year and during the current administration of CBN Governor Olayemi Cardoso.
A review of the reserve trend indicates that Nigeria crossed the $50 billion mark on March 10 when external reserves stood at $50.01 billion. The upward trajectory continued in the following months, reaching $50.11 billion on June 5 before exceeding the $51 billion threshold in mid-June.
Analysts attribute the strong reserve performance to a combination of improved foreign exchange management, increased remittance inflows, stronger investor sentiment, and policy measures introduced by the apex bank.
One of the key reforms linked to the reserve growth is the CBN’s review of the operational framework for International Money Transfer Operators (IMTOs).
In March, the apex bank directed all IMTOs operating in Nigeria to open naira settlement accounts and process remittance transactions through those accounts. Under the new arrangement, beneficiaries of diaspora remittances receive payments in naira rather than directly in foreign currency.
The policy effectively ended a long-standing practice under which Nigerians receiving money from relatives and associates abroad were paid in United States dollars.
According to the CBN, the directive forms part of broader efforts to strengthen the remittance ecosystem and improve transparency in foreign exchange transactions. The measure aligns with the revised guidelines for international money transfer services issued by the bank in January 2024.
Economic observers note that diaspora remittances remain one of Nigeria’s most important sources of foreign exchange, contributing billions of dollars annually to the economy. Improved monitoring and settlement mechanisms are expected to increase formal inflows while reducing leakages associated with informal channels.
The rise in reserves comes at a time when authorities are intensifying efforts to rebuild market confidence, improve foreign exchange liquidity, and attract foreign portfolio and direct investments.
A stronger reserve position provides the CBN with greater capacity to meet external obligations, support exchange-rate stability, and cushion the economy against global financial shocks and commodity price volatility.
Market analysts believe that sustaining the current momentum will depend on continued growth in oil earnings, higher non-oil exports, stronger remittance inflows, and the maintenance of reforms designed to deepen transparency in the foreign exchange market.
While the reserve build-up represents a positive signal for the economy, experts caution that maintaining the gains will require consistent policy implementation and efforts to diversify Nigeria’s foreign exchange sources beyond crude oil revenues.
Nonetheless, the achievement marks one of the most significant improvements in Nigeria’s external reserves position in nearly two decades and underscores the impact of recent monetary and foreign exchange reforms on the country’s macroeconomic outlook.
