Economists Hail CBN as Nigeria’s External Reserves Hold at $48.54bn Amid Global Shocks
Economists have commended the Central Bank of Nigeria for sustaining the country’s external reserves at $48.54 billion despite persistent global economic uncertainty and pressure on emerging-market assets.
The analysts said the reserves position points to improving foreign-exchange liquidity, stronger market confidence and a more stable external buffer for the Nigerian economy at a time of heightened international volatility.
Speaking on the development, Dr Uju Ogubunka, former Executive Secretary of the Chartered Institute of Bankers of Nigeria, said the level of reserves suggests healthier liquidity conditions in the foreign-exchange market and could reassure investors about their ability to repatriate funds.
“Having this value of foreign reserves indicates adequate liquidity and stability in the foreign exchange market. This often engenders investment confidence, while repatriation of funds by investors will not be a challenge,” he said.
Ogubunka, however, urged the government to sustain reserve accretion by investing more deliberately in productive sectors and critical infrastructure, arguing that stronger domestic capacity remains essential to translating external stability into broader economic relief.
“The government should invest more in productive sectors and address key infrastructural deficits. This will stimulate economic growth and help ameliorate the hardship being experienced by Nigerians,” he added.
Also commenting, Benjamin Akinsoto, Senior Researcher at BAA Consult, said the CBN deserved credit for maintaining a robust reserves position despite global shocks, including risk-off investor sentiment triggered by geopolitical tensions.
According to him, the country’s reserves remain strong enough to provide significant import cover and support macroeconomic confidence, even if short-term market pressures occasionally cause temporary fluctuations.
“Although pressures from global uncertainty have pushed some investors toward safer havens, resulting in temporary depletion, the reserves remain robust,” he said.
Akinsoto added that ongoing reforms in Nigeria’s foreign-exchange market should continue to support recovery, improve confidence and strengthen the broader external account over time.
“The apex bank’s reforms in the foreign-exchange market will lead to a rebound despite minor depletions. Any setback will likely be temporary, considering the incentives regulators have put in place for investors,” he said.
The latest reserve position extends a recent period of recovery in Nigeria’s external buffers. Broader CBN disclosures and recent market commentary have pointed to improved gross and net reserve levels, supported by foreign-exchange reforms, stronger inflows and better reserve management.
BRANDECONOMY Insight
Reserve Growth Is Encouraging — But Nigeria Must Convert Stability into Productive Strength
The rise in Nigeria’s external reserves is an important confidence signal. It suggests that recent foreign-exchange reforms, stronger reserve management and improved market transparency are beginning to reinforce the country’s external position.
But reserves are not an end in themselves. Their deeper value lies in what they represent: greater resilience against external shocks, stronger investor confidence and improved capacity to manage currency-market stress.
The next challenge is to convert that macroeconomic stability into real-economy momentum. Nigeria needs higher productive investment, export expansion, infrastructure delivery and stronger non-oil foreign-exchange earnings. Without those, reserve growth may remain impressive on paper while household pressure and business costs persist.
The CBN has helped strengthen the buffer. The broader economic system must now deepen the foundation.
