The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said Nigeria’s foreign exchange reserves provide a buffer against global economic shocks, helping to protect ordinary Nigerians from external pressures.
Cardoso made the remarks at the IMF–World Bank Annual Meetings in Bangkok, where he highlighted the benefits of the country’s rising external reserves, exchange rate stability and efforts to reduce inflation.
Nigeria’s gross external reserves stood at $55.1 billion as of October 13, 2026, which Cardoso described as the highest level in 18 years.
Reserves cushion Nigerians from global headwinds
Cardoso said he was frequently asked how the CBN’s policy achievements translate into tangible benefits for ordinary Nigerians.
He argued that the country’s stronger external reserves help shield the economy from pressures affecting other countries, noting that Nigeria could have faced even greater challenges without the buffer.
- “What we’ve been able to accomplish in terms of having very robust external reserves, highest in 18 years, is also something that affects the ordinary person,” he said.
- “Without that, a lot of the headwinds that other countries face, we would be facing them, in fact, in a perhaps worse way than they are facing.”
The CBN governor said Nigeria had introduced reforms and policies early enough to strengthen its capacity to withstand external shocks, including pressures linked to the war and discussions around tariffs.
Naira stability, lower inflation cited as benefits
Cardoso also pointed to the naira’s performance, saying the exchange rate had remained relatively stable and appreciated, with implications for Nigerians across the economy.
- “Our exchange rate has held stable, in fact, has appreciated, as a result of which it has a direct effect, or indirect effect on everybody,” he said.
He rejected the suggestion that ordinary Nigerians were not benefiting from the country’s economic policy gains, arguing that the absence of stronger reserves and exchange rate stability would have exposed them to more severe negative effects.
- “You do, you feel it, definitely feel it. If it wasn’t there, then you would feel it in a very negative way,” he said.
The CBN governor also identified lower inflation as an important benefit, particularly for low-income households whose purchasing power is eroded by rising prices.
- “Arguably the most vicious tax you have on the poor is inflation. And being able to bring down inflation obviously affects the ordinary person. It affects everybody,” Cardoso said.
He concluded by urging Nigerians to recognise the positive developments in the economy rather than dismissing them.
- “I hate to say something, but I will say it. I think Nigerians tend to perhaps be their worst enemies. The good things that we see, we want to trash away, is the bad things that we want to push out. Unfortunately, in this case, it’s nothing bad,” he said.
External reserves continue to rise
Nigeria’s external reserves recorded steady growth through September and into October, strengthening the country’s foreign exchange buffer.
The reserves increased from approximately $53.90 billion on September 1 to $54.93 billion on September 30, representing a gain of $1.03 billion during the month.
The upward trend continued in October, with reserves reaching $54.95 billion on October 2 and $55.08 billion on October 9 before rising to $55.1 billion as of October 13.
The increase in reserves provides a stronger buffer against external shocks, although its impact on households also depends on factors such as inflation, and exchange rate movements.