Nigeria’s external reserves hit $52.52bn, enough for 11 months’ imports, says Cardoso

• as apex bank targets single-digit inflation

By Abubakar Yunus

Nigeria’s gross external reserves have climbed to $52.52 billion enough to finance approximately 11 months of imports Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, announced on Tuesday.

Cardoso disclosed this in Abuja following the 306th Monetary Policy Committee (MPC) meeting, where the apex bank resolved to retain the Monetary Policy Rate (MPR) at 26.5 percent for the second consecutive time in 2026.

He revealed that foreign reserves grew from $50.47 billion at the end of May 2026 to $52.52 billion as of July 17, 2026, driven primarily by crude oil-related tax receipts and third-party inflows.

“This is sufficient to finance approximately 11 months of imports of goods and services, surpassing the international benchmark of three months’ cover,” Cardoso stated.

The CBN governor noted that the boosted reserve position strengthens Nigeria’s external buffers against global economic shocks, including renewed geopolitical tensions in the Middle East.

While acknowledging that GDP growth in the oil sector slowed to 2.57 percent in the first quarter of 2026 down from 6.79 percent in Q4 2025 due to maintenance on oil facilities, Cardoso pointed to early signs of recovery.

He highlighted that the Purchasing Managers’ Index (PMI) rose to 50.1 points in June from 49.6 in May, signaling a return to business expansion.

Alongside the reserve growth, the CBN expressed optimism that Nigeria’s inflation rate will fall to single digits by early 2027, despite global economic headwinds.

Data from the National Bureau of Statistics (NBS) shows that headline inflation eased marginally to 15.91 percent in June from 15.93 percent in May.

Cardoso noted that while disinflation had been steady for 11 months, unforeseen Middle East conflicts introduced unexpected global pressures.

“We were expecting that by early 2027, we would be where we want to be in terms of inflation and firmly on track for single digits

“Unfortunately, these were shocks that were not anticipated in that manner and have gone on a lot longer than could have been anticipated,” Cardoso stated.

Despite these challenges, the CBN governor emphasized that the slight drop in inflation shows that two years of monetary tightening are yielding results.

He reaffirmed the apex bank’s commitment to deepening collaboration with fiscal authorities to cushion external shocks, restore price stability, and protect the national economy.