CBN says Nigeria’s $42.01bn ‘External Reserves’ can finance importation of goods for 9 months

The Central bank of Nigeria, CBN has said, Nigeria’s $42.1 billion external reserves can effectively finance importation of goods and services for 9 months.

The apex bank governor, Olayemi Cardoso gave the assurance on Wednesday, assuring citizens of better economic fortunes in 2025.

He made the declaration during a performance index report presentation to the Senate Committee on Banking, Insurance and other Financial Institutions.

According to the CBN governor, “External Reserves rose from $38.35 bilion it was on September 30, 2024 , to $42.01billion as of December 12, 2024 .

The increase in external reserves within the stated period, he explained, was driven largely by receipts from crude oil related taxes and third party receipts in Q3 2024.

“We maintained a current account surplus and saw remarkable improvements in our trade balance.

“Our external reserves level can finance over 9.09months of import of goods and services or 13.91 months only , higher than the international benchmark of 3.0 months and a robust buffer against shocks “, he said .

On cash shortage , the CBN boss reiterated application of a new policy of N150 million fine against any branch of Banks caught indulging in illegal distribution of new Naira notes to currency hawkers and unscrupulous elements .

He added that the Nigeria economy will take a better shape in 2025 fiscal year , through policies and measures that had been put on ground .

“Distinguished Senators , as we conclude this briefing , I want to highlight that despite the challenges facing our economy, there are clear reasons for optimism .

“The gradual stabilization of the forex market, ongoing banking sector recapitalization , positive growth trends in key sectors , especially the services sector , indicate a path toward recovery and stability “, he said .

Apparently impressed with his presentation, the Chairman of the Committee, Senator Adetokunbo Abiru, APC Lagos East said he deserved a round of applause which however , not allowed in the Senate

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