The Central Bank of Nigeria (CBN) has announced that the country’s external reserves, now standing at $42.01 billion, can support the importation of goods and services for over nine months in 2025. This was revealed during a presentation of the CBN’s performance report to the Senate Committee on Banking, Insurance, and Other Financial Institutions.
CBN Governor Olayemi Cardoso attributed the rise in reserves—up from $38.35 billion in September 2024—to increased crude oil-related taxes and third-party receipts in the third quarter of 2024. Cardoso stated, “Our external reserves can finance 9.09 months of imports, surpassing the international benchmark of three months, providing a robust buffer against economic shocks.”
Policy Interventions and Cashless Economy
As part of ongoing economic reforms, the CBN has introduced policies to strengthen electronic payment systems and agency banking operations. A new directive caps weekly cash withdrawals at ₦500,000 per customer and limits daily agent banking cash-out transactions to ₦100,000. These measures aim to enhance Nigeria’s cashless economy, curb fraud, and standardize operations across the financial industry.
The policy was detailed in a circular dated December 17, 2024, signed by Oladimeji Yisa Taiwo of the CBN’s Payments System Management Department. The apex bank also stressed that financial institutions must ensure all agent terminals are linked to the Nigeria Inter-Bank Settlement System (NIBSS) to monitor compliance and enforce transaction limits.
Economic Outlook for 2025
Despite current economic challenges, Cardoso expressed optimism about Nigeria’s prospects for 2025. He highlighted the stabilization of the forex market, ongoing banking sector recapitalization, and growth in key sectors, particularly services. He also reported that diaspora remittances surged by 61.1% in 2024, reaching $4.22 billion between January and October, compared to $2.62 billion during the same period in 2023.
Cardoso credited these improvements to efficient remittance processes and growing confidence among Nigerians in the diaspora. He projected that remittance inflows would continue their upward trajectory through the end of the year.
Senate’s Recommendations
During the Senate session, Committee Chairman Tokunbo Abiru urged the CBN to assess the impact of its interest rate hikes on economic productivity. He emphasized the need for monetary policies that balance inflation control with improved access to credit.
Abiru also called for targeted interventions to support small and medium enterprises (SMEs) and recommended aligning monetary and fiscal policies to achieve Nigeria’s economic goals. He further criticized the persistent cash scarcity, high bank charges, and low savings deposit interest rates, which he argued undermine public confidence in the banking system.
Strengthening Agency Banking
To streamline agency banking, the CBN mandated that all agent banking services be conducted exclusively through designated float accounts monitored by licensed financial institutions. It warned that non-compliance would result in penalties.
The apex bank reiterated its commitment to fostering economic stability and enhancing public trust in Nigeria’s financial system through these reforms.