Nigeria’s foreign exchange reserves have risen to $38 billion, the highest level recorded in three years, according to the latest data released by the Central Bank of Nigeria.
The CBN attributed the increase to improved oil revenues following a rise in crude oil production, increased non-oil export earnings, and inflows from diaspora remittances which have grown significantly following the unification of the foreign exchange market.
The CBN Governor described the development as a positive sign of the resilience of the Nigerian economy and said the improved reserves position would enhance the country’s ability to defend the naira and meet its external obligations.
“Our reserves position gives us greater confidence and capacity to manage exchange rate volatility. We will continue to deploy these reserves prudently in the best interest of the Nigerian economy,” he said.
The naira has shown relative stability in recent weeks following a period of significant depreciation, with the exchange rate at the official market trading within a narrower band.
Financial analysts said the improved reserves position was encouraging but cautioned that Nigeria needed to address its structural dependence on oil revenues and accelerate efforts to grow non-oil export earnings to sustain the gains.
The World Bank and International Monetary Fund have both cited Nigeria’s improving reserves as a positive development in their recent assessments of the Nigerian economy.