Naira Rebound Gains Steam as Foreign Reserves Hit $54bn, Highest in 18 Years

Central Bank Governor Olayemi Cardoso has attributed the sustained balance-of-payments surplus to heightened foreign exchange inflows, reinforced by improved receipts from crude oil-related petroleum profit taxes, non-oil revenue, and substantial third-party portfolio inflows. Strategic fiscal tightening, coupled with structural reforms within the official foreign exchange architecture, has renewed international investor confidence.

The reserve surge has had an immediate stabilizing effect on the domestic currency. Concurrently, the Naira appreciated to N1,315 per dollar at the official market window on Thursday—its strongest valuation in over two years. The convergence between market rates and official benchmarks continues to narrow the premium once exploited by speculative arbitrageurs.

Beyond headline numbers, this $54 billion threshold significantly expands Nigeria's import cover and provides the monetary authority with formidable ammunition to manage liquidity shocks. As the CBN deepens market transparency, economic analysts note that sustained reserve accretion will be crucial in tamping down imported inflation and lowering sovereign borrowing costs across international capital markets.