By Milcah Tanimu
The Central Bank of Nigeria (CBN) announced that the country’s external reserves of $42.01 billion can finance imports for more than nine months. CBN Governor Mr. Olayemi Cardoso shared this information during a report presentation to the Senate Committee on Banking, Insurance, and Other Financial Institutions on December 18, 2024.
Cardoso revealed that external reserves increased from $38.35 billion on September 30, 2024, to $42.01 billion on December 12, 2024. This increase was mainly due to crude oil-related taxes and third-party receipts in the third quarter of 2024.
He stated that Nigeria’s reserves now surpass the international benchmark of 3.0 months. The reserves are enough to cover over 9.09 months of imports or 13.91 months for goods and services.
On the issue of cash shortages, Cardoso mentioned a new policy imposing a ₦150 million fine on banks caught distributing new Naira notes to hawkers and criminals.
Looking ahead to 2025, Cardoso expressed optimism about Nigeria’s economic future. He pointed to the stabilizing forex market, banking sector recapitalization, and growth in key sectors, like services, as promising signs.
Senator Adetokunbo Abiru, Chairman of the Senate Committee, praised Cardoso’s presentation, saying he deserved applause. However, he noted that applause is not allowed in the Senate.
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