Economists have lauded the Central Bank of Nigeria (CBN) for maintaining the country’s external reserves at $48.54 billion, despite persistent global economic shocks affecting emerging markets.
Experts, speaking to our correspondence said the steady reserves indicate improved investor confidence and strengthened liquidity in Nigeria’s foreign exchange market.
Dr. Uju Ogubunka, former Executive Secretary of the Chartered Institute of Bankers of Nigeria (CIBN), said the reserve level reflects stability in the FX market and sends positive signals to investors. “Adequate foreign reserves ensure liquidity and stability, encouraging investment and easing fund repatriation,” Ogubunka noted. He urged the government to channel investments into productive sectors and infrastructure to further stimulate economic growth.
Mr. Benjamin Akinsoto, Senior Researcher at BAA Consult, added that Nigeria’s reserves are sufficient to cover imports for about 12 months, far above the international benchmark of three months. He acknowledged pressures from geopolitical tensions, such as the Middle East crisis, but said the reserves remain robust.
“The reforms introduced by the CBN in the foreign exchange market will support a resilient economy and long-term recovery. Temporary setbacks are expected, but incentives for investors will maintain stability,” Akinsoto said.
Data from the Central Bank of Nigeria shows that the country’s gross external reserves rose to $48.54 billion on May 14, up from $48.33 billion recorded on May 7, adding $218 million over the week.
Economists emphasized that sustaining these reserves is key to boosting economic confidence, attracting investment, and addressing challenges faced by Nigerians.
