Nigeria’s external reserves climb to $38.90bn in May – CBN
The nation’s external reserves increased to $38.90 billion as at May 16, 2025. The reserves increased by 2.85 per cent from $37.82 billion at end-March 2025.
the Central Bank of Nigeria (CBN) disclosed this while reviewing the key development in the domestic and global economy during Monetary policy Committee meeting said that the growth represents an import cover of 7.6 months.
The apex bank in its statement issued at the end of MPC meeting signed by the Governor, CBN, Olayemi Cardosa said the balance of payments (BOP) recorded a surplus of $1.10 billion in the fourth quarter of 2024, compared with $4.21 billion in the preceding quarter, on account of moderation in current account surplus.
He said that although global output growth is expected to remain positive despite existing and emerging headwinds, the International Monetary Fund (IMF) downgraded
its global growth forecast to 2.8 per cent in 2025 and 3.0 per cent in 2026, compared with 3.3 per cent in 2024 due to the uncertain policy environment.
The MPC members noted with satisfaction the progressive moderation in food inflation and, therefore, commended the government for implementing measures to increase food supply as well as stepping up the fight against insecurity, especially in farming communities. Encouraging security agencies to sustain the momentum while government provides necessary inputs to farmers to further boost food production, they, however, acknowledged underlying inflationary pressures driven largely by high electricity prices, persistent foreign exchange demand pressure and other legacy structural factors.
The MPC also noted new policies introduced by the Federal Government to boost local production, reduce foreign currency demand pressure, and thus, lessen the pass-through to domestic prices.
Given the relative stability observed in the foreign exchange market, members urged the Bank to sustain the implementation of the ongoing reforms to further boost market confidence.
Urging the fiscal authority to strengthen current efforts at enhancing foreign exchange earnings, especially from gas, oil and non-oil exports, they expressed concerns about the recent decline in crude oil prices, attributable to increased production by non-OPEC members as well as uncertainties associated with U.S. trade policy, which present new challenges for fiscal receipts and budget implementation.
