External reserves remained robust at $39.4bn, says Cardoso

The Governor, Central Bank of Nigeria (CBN) on Thursday revealed that Nigeria’s external reserves remained robust at $39.4 billion as of 14th February 2025, translating to an import cover of 9.6 months for goods and services. 

Speaking after the first Monetary Policy Committee (MPC) meeting in 2025, Cardoso revealed that the Balance of Payments has remained strong with a positive current account balance of $6.06 billion as at the end of the third quarter of 2024. 

The members of the MPC voted to retain the MPR at 27.50 per cent.; retain the asymmetric corridor around the MPR at +500/-100 basis points; retain the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent and retain the Liquidity Ratio at 30.00 per cent.

He noted that the committee are satisfied with the  recent macroeconomic developments which is expected to positively impact price dynamics in the near to medium term. 

Part of the macroeconomic developments he mentioned include the stability in the foreign exchange market with the resultant appreciation of the exchange rate and the   gradual moderation in the price of Premium Motor Spirit (PMS). 

He said further that, “Members, however, were not oblivious of the risk of persisting inflationary pressures driven largely by food prices. 

“The Committee noted the recent rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS) which reviewed the weights of items in the consumption basket to reflect current consumption patterns. 

“The Committee further noted that as the Federal Government continues to improve security in food producing communities, supported by other measures to enhance food supply, food prices are expected to continue to moderate.”

He said the MPC members  observed that despite pockets of macroeconomic headwinds confronting the Nigerian economy, the banking system has remained robust and resilient. 

“Members, however, urged the Bank not to relent on its keen surveillance of the banking system, especially at a time of significant exogenous and endogenous headwinds. In addition, Members called on the Management of the Bank to closely monitor the ongoing recapitalization of the banking system to ensure the injection of quality capital as envisaged in the framework,” he added.