By Charles Ebi
Central Bank of Nigeria Monetary Policy has continued to gain momentum as the inflation rate for October moderated to 16.05% from 18.02% recorded in September 2025.
Core inflation also declined to 18.69% from 19.53% in the preceding month.
Similarly, food inflation stood at 13.12% as against 16.57% recorded in September 2025.
This is just as Nigeria’s foreign exchange ,FX, reserves have surged to $46.7bn, marking their highest level in 12 years, following a series of aggressive monetary and currency reforms implemented by the Governor of the Central Bank of Nigeria ,CBN, Mr Olayemi Cardoso.
The last time Nigeria’s reserves were as high as this was on September 13, 2013, when reserves were at $46.1bn
The renewed confidence in Nigeria’s FX management regime comes at a time when the apex bank has been under intense scrutiny over past audit queries and persistent market volatility. But recent data from the CBN indicates that the comprehensive reforms introduced since Cardoso assumed office have begun yielding tangible results.
At $43.53bn, Nigeria’s FX stockpile has now climbed to a level last recorded in 2013–2014, a period of robust crude oil prices and relative macroeconomic stability.
In contrast, the years that followed were marked by sharp depletion caused by oil price crashes, recession, COVID-19 disruptions, and sustained pressure on the naira.
Analysts say the bounce-back underscores a significant turnaround in FX liquidity management an area widely criticised before Cardoso’s tenure.
The build-up in external reserves is largely attributed to Cardoso’s decision to unify the FX market and dismantle multiple exchange windows, which helped eliminate arbitrage opportunities that had cost the economy billions of dollars.
By restoring transparency, the CBN attracted renewed inflows from foreign portfolio investors who had previously exited due to uncertainty.
One of Cardoso’s first major steps was the settlement of verified FX backlog obligations owed to airlines, manufacturers, and foreign investors. The move helped rebuild trust and reopened critical inward investment channels.
Reforms within the International Money Transfer Operators ,IMTOs, space, including improved settlement efficiency and market-reflective pricing, spurred higher remittance inflows.
Also, high interest rates set by the Monetary Policy Committee ,MPC, have made naira-denominated assets more attractive, boosting liquidity and strengthening reserves.
The rise in reserves has had a calming effect on the naira, which has faced significant volatility in recent months. A stronger reserve position equips the CBN with greater capacity to intervene when needed, smooth volatility, and support overall macroeconomic stability.
Market watchers note that foreign investors particularly in fixed-income instruments have responded positively, viewing the reforms as a shift away from past opaque policies.
Cardoso has consistently maintained that the bank’s policies are designed not just for short-term relief but to restructure Nigeria’s FX market on a sustainable path.
“We are building a transparent, market-driven foreign exchange system that will restore investor confidence and support long-term economic growth”, Cardoso said recently during an engagement with financial sector leaders.
