The Central Bank of Nigeria (CBN), on Wednesday, declared that the $42.01 billion external reserves of the country, could finance the importation of goods and services for more than nine months.
The Governor of the apex bank, Mr Olayemi Cardoso, made the declaration while presenting the performance index report to the Senate Committee on Banking, Insurance and Other Financial Institutions.
According to the CBN governor, “External Reserves rose from $38.35 billion it was on September 30, 2024, to $42.01 billion as of December 12, 2024.
He pointed out that the increase in external reserves within the stated period 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 the application of the new policy of a N150 million fine against any branch of banks caught indulging in the illegal distribution of new Naira notes to currency hawkers and unscrupulous elements.
He added that the Nigerian economy will take a better shape in the 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, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability”, he said.
Impressed with his presentation, the Chairman of the Committee, Senator Adetokunbo Abiru (APC Lagos East), said that he deserved a round of applause which however, is not allowed in the Senate.
