FX Moves Lift Reserves CBN Gov

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has credited the recent increase in Nigeria’s external reserves to the settlement of outstanding foreign exchange (FX) obligations and the bank’s sustained commitment to transparency and reform in the FX market.

As of Tuesday, the nation’s external reserves stood at $42.35 billion. Cardoso made the disclosure on Friday during a fireside chat at the inaugural CBN Governor Annual Lecture Series, held at Lagos Business School with the theme “Next Generation Leadership in Monetary Policy and Nation Building.”

Cardoso explained that the CBN’s decision to clear verified FX backlogs,following a Deloitte forensic audit that revealed irregularities in several forward contracts,was driven by the need to rebuild global confidence in Nigeria’s financial system.

“When I assumed office, I promised that we would clear all legitimate FX backlogs owed to third parties. Frankly, I didn’t know how it would be done, but it was non-negotiable. Our integrity as a country had to be protected,” he said.

Describing the move as a “major sacrifice,” the CBN boss noted that credibility and trust are crucial for attracting sustainable investment. “If we want people to invest in our economy, we must keep our word. That single action helped boost our reserves because investors respond to transparency and accountability,” he stated.

Cardoso highlighted several initiatives the apex bank has introduced to strengthen market confidence. These include open and televised press briefings after every Monetary Policy Committee (MPC) meeting, consistent publication of audited financial reports,ending years of secrecy,and the public release of Nigeria’s net reserves position by the end of 2024.

“Many doubted that we would actually publish the net reserves figure. But we set a date, delivered on it, and in doing so, reassured both local and foreign investors,” he explained.

He also pointed to the implementation of a B-matching electronic trading platform in the FX market, which has made rates and transactions visible to all participants. “This system has made the market more transparent and competitive, removing the advantage some previously enjoyed through privileged access,” he added.

Cardoso reiterated that his broader vision is to create a fair business environment where Nigerians can operate without influence or favoritism. “By the time I leave the Central Bank, no one will need special connections to get things done. Today, many Nigerians can already use their naira debit cards abroad,something that was impossible not long ago,” he said.

He maintained that the CBN’s central goal remains ensuring economic stability, noting that stability is the foundation for investor confidence. Comparing the current economic climate to two years ago,when many Nigerians were moving their wealth abroad,he said there is now a renewed wave of optimism among international partners and investors such as BlackRock.

“We’ve seen a clear resurgence of confidence. Many who were hesitant before are now saying this is the right time to invest in Nigeria,” Cardoso said.

He further revealed that the CBN has embraced technological innovation, holding a retreat on digital transformation and developing a roadmap for the adoption of artificial intelligence and digital currencies in partnership with the Securities and Exchange Commission.

Concluding his remarks, Cardoso said, “Two years of consistency, clear communication, and disciplined implementation have placed us on a strong path. In one word, Nigeria’s future is bright.”

Earlier, Dean of Lagos Business School, Professor Olayinka David-West, commended Cardoso for his leadership and commitment to transparency,values he pledged during his Senate confirmation.

The event drew top officials, including CBN Deputy Governors and bank CEOs such as Segun Alebiosu (FirstBank), Wole Adeniyi (Stanbic IBTC), Yetunde Oni (Union Bank), Miriam Olusanya (GTBank), Lawal Bolaji (Ecobank Nigeria), and Temi Popoola, Group Managing Director/CEO of the Nigerian Exchange Group.