Nigeria’s foreign exchange reserves have risen to $52.52 billion, according to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, who also announced that the apex bank had opted to maintain its benchmark interest rate amid signs of easing inflation and improving economic activity.
Speaking on Tuesday at the end of the Monetary Policy Committee’s (MPC) 306th meeting in Abuja, Cardoso said the committee unanimously agreed to retain the Monetary Policy Rate (MPR) at 26.5 per cent, signalling the bank’s intention to sustain its current monetary stance while closely monitoring economic developments.
The MPC also left the Standing Facilities Corridor unchanged at +50/-450 basis points around the MPR. In addition, the Cash Reserve Ratio was retained at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while non-Treasury Single Account public sector deposits remained at 75 per cent.
Beyond its policy decision, the CBN highlighted a notable improvement in the country’s external position. According to Cardoso, gross foreign reserves increased from $50.47 billion at the end of May to $52.52 billion as of July 17, driven largely by higher crude oil-related tax receipts and inflows from external sources.
The reserve level, he noted, is sufficient to cover approximately 11 months of imports of goods and services, well above the international benchmark of three months’ import cover, and reflects the strengthening of Nigeria’s external buffers.
The central bank governor also pointed to encouraging developments in inflation. Headline inflation slowed slightly to 15.91 per cent in June from 15.93 per cent in May, bringing to an end three consecutive months of rising prices. While food inflation increased to 17.52 per cent, largely due to supply constraints, the moderation in core inflation helped offset the upward pressure.
Core inflation declined to 15.92 per cent in June from 16.82 per cent the previous month, a trend Cardoso attributed mainly to greater stability in the foreign exchange market. The 12-month average inflation rate also fell for the sixth consecutive month, dropping to 17.63 per cent from 18.36 per cent in May.
Economic growth, however, showed mixed signals. Nigeria’s Gross Domestic Product expanded by 3.89 per cent in the first quarter of 2026, down slightly from 4.07 per cent recorded in the final quarter of 2025. The slowdown was largely linked to weaker performance in the oil sector, where growth fell sharply due to maintenance work on production facilities.
Nevertheless, the non-oil sector remained resilient, posting growth of 3.94 per cent, supported by strong performances in telecommunications, financial services, trade and transportation.
Looking ahead, the CBN expressed optimism that economic growth would remain steady, aided by improving oil production, stronger business activity and the effects of ongoing policy reforms. The bank also projected that inflation would continue to moderate in the medium term, although it warned that escalating tensions in the Middle East remain a major risk to the country’s economic outlook.
Against this backdrop, the MPC reiterated its commitment to preserving price stability and maintaining confidence in the financial system, while signalling its readiness to adjust policy should economic conditions change.
