The Central Bank of Nigeria (CBN) on Tuesday, November 18, 2025 announced that Nigeria’s foreign reserves have increased to $46.7bn (forty six point seven billion dollars), the strongest level in seven years. This is estimated to cover over ten months of import of goods and services. The apex bank noted that it was the first time the country has attained such a level since 2018. The Foreign Reserves stood at $34.39Bn (thirty four point three nine billion dollars) in May 2023 when President Bola Tinubu assumed power.
According to the CBN, the reserves milestone reflected renewed investor confidence, improved oil receipts and stronger balance-of-payments inflows.
The stronger reserve position is a key factor behind the stability of the naira. Today, the gap between the official and Bureau de Change windows had narrowed to below two per cent.
Naira’s stabilisation has in turn encouraged foreign participation in Nigeria’s fixed-income and money markets, with investors responding to clearer policy signals and tighter monetary conditions.
There is no doubt that the tough economic reforms embarked upon by the administration of President Bola Tinubu caused initial pains, especially to the vulnerable in the society . But today, the economy has moved from a wobbling stage to a period of stabilisation. It is now set for a growth trajectory. However, the government needs the support of Nigerians to continue to steer the economy in the right direction.
The reforms which have been driving foreign-currency inflows and have also translated into sustained dis-inflation.
Headline inflation which was 34.6% (thirty four point six per cent) at its peak in November 2024, has eased to 16.05% (sixteen point zero five per cent) in October 2025. The latest figure represents the seventh consecutive month of dis-inflation, and the lowest in three years.
The remarkable improvement in Nigeria’s economic indicators is now being recognised globally. All the three top international ratings agencies have upgraded Nigeria’s economy: outlook. The S&P Global Ratings, recently revised the country’s outlook from stable to positive.
The removal of Nigeria from the Financial Action Task Force Grey List has led to further boost to international confidence, because it demonstrated the country’s full alignment with global standards.
There is a steady flow of Foreign Direct Investment into Nigeria. The country attracted $5.6 bn( five point six billion dollars FDI in the first quarter of 2025, representing a 67% year – on – year increase.
Domestically, the three tiers of government ( Federal, States and Local Government) have been receiving increased monthly allocations from the Federation Account Allocation Committee (FAAC).
The committee has been sharing over two trillion naira to the government at all levels since July 2025, with the month of August recording the highest of two point two two five trillion naira, compared to the N786.1 billion which was shared in May, 2023. This means that the money shared by FAAC today has more than doubled. Thanks to the economic reform agenda.
Nigerians now have the responsibility to prevail on their Governors and local government chairmen to utulise their increased allocations to improve the quality of life of the ordinary Nigerians.
ABOUT THE AUTHOR:
Mustapha Isah is former President of the Nigerian Guild of Editors (NGE).