₦airaland Forum

The Central Bank of Nigeria said Wednesday that the $42.01billion external reserves of the country can finance importation of goods and services for more than nine months in 2025.

This is as the apex bank, assured Nigerians of better economic fortunes in 2025. The Governor of the CBN, Mr Olayemi Cardoso stated this during performance index report presentation to the Senate Committee on Banking, Insurance and other Financial Institutions.

“The CBN Governor said, “External Reserves rose from $38.35bilion it was on September 30, 2024, to $42.01billion as of December 12, 2024.
He explained that the increase in external reserves within the stated period, was driven largely by receipts from crude oil related taxes and third party receipts in Q3 2024.

He said, “We maintained a current account surplus and saw remarkable improvements in our trade balance.

“Our external reserves level can finance over 9.09months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks.”

On cash shortage, the CBN boss, reiterated application of new policy of N150million fine against any branch of Banks caught indulging in illegal distribution of new naira notes to currency hawkers and unscrupulous elements.

He added that the Nigeria economy will take a better shape in 2025 fiscal year , through policies and measures that had been put on ground.

Cardoso said, “Distinguished Senators , as we conclude this briefing, I want to highlight that despite the challenges facing our economy, there are clear reasons for optimism.

“The gradual stabilization of the forex market , ongoing banking sector recapitalization, positive growth trends in key sectors, especially the services sector indicate a path toward recovery and stability,” he said.

He explained that diaspora remittances through the International Money Transfer Operators (IMTOs) totalled $4.22 billion from January to October 2024, almost doubling the $2.62 billion recorded in the corresponding period in 2023.
The increase in remittances represents a growth of approximately 61.1% in one year.

Providing a monthly breakdown, Cardoso noted that remittances rose from $336.61 million in September 2024 to $402.38 million in October 2024.

The CBN Governor attributed the increase to enhanced efficiency in the remittance process, the positive impact of President Bola Tinubu’s policies, and the growing confidence of Nigerians in the diaspora to contribute to national development.

Cardoso further projected that remittance inflows would continue to rise by the end of the year, given the current trajectory.

The Senate Committee on Banking, Insurance and other Financial Institutions on the occasion, urged the CBN to address its interest rate hikes.

It warned that economic productivity cannot be enhanced in a high interest rate environment where access to credit is equally constrained.

The Chairman of the Senate Committee, Mukhail Abiru, gave the advise during the interactive session with the CBN delegation.

Abiru said, “It goes without saying, therefore, that productivity cannot be enhanced in a very high interest rate environment where access to credit is equally constrained.

“This is why we think the bank should devote more time to assess the impact of sustained rate hikes not only on the general price level but also on the overall economic activity.”

Further expressing comcerns over risisng inflation, the chairman urged the apex bank to consider deploying monetary policy tools to support productivity noting that traditional tools for maintaining inflation are weakened by huge cash circulating outside the banks.

“This is without prejudice to the banks’ primary mandate of maintaining price stability and its instrument of independence,” he said.

Abiru highlighted the role of increased output, especially in the agricultural sector, in moderating inflationary pressures dominated by the food index.

To further support productivity, he recommended that the bank should consider resuming targeted interventions to SMEs through developing financial institutions, and other mechanisms, as part of efforts to achieve the $1 trillion of economy.

He further emphasised the importance of synchronising monetary and fiscal policies to achieve desired macroeconomic goals.

The chairman also raised concerns around the persistent cash scarcity in recent times despite assurances by CBN to address the challenge.
He criticised the difficulty in accessing cash from ATMs, including those located within the bank premises, as well as the prevalence of dirty and mutilated Naira notes in circulation.

Additionally, he condemned excessive bank charges, delays in resolving customer complaints, and the high rate of failed online transactions, all of which, he noted, undermine public confidence in the banking system.

Abiru further urged the apex bank to clear the outstanding $2.4bn foreign exchange (FX) forward contract noting that the Senate has recieved petitions from, small, medium, and large enterprises.

Dreal1247:
The Tinubu blind and paid supporters and cyper promoters on Nairaland are always the first to comment on any issue on government. They fire arrows at Mr Peter Obi and any other person who does not agree with Tinubu. The worst thing is that they can be illogical at most times as they make incoherent comments on the subject matter. Blind followers of blind.

Dreal1247:
The Tinubu blind and paid supporters and cyper promoters on Nairaland are always the first to comment on any issue on government. They fire arrows at Mr Peter Obi and any other person who does not agree with Tinubu. The worst thing is that they can be illogical at most times as they make incoherent comments on the subject matter. Blind followers of blind.

femisplash:
This would really enhance economic stability. Nigeria can confidently meet her international obligation. However, the call for reduction in the interest rate is a dicey one, would it not further push up the inflation rate?

ArewaNightmare:
Igbakugba economics 😆

Cho Cho Cho

Show workings

vanbonattel:
They are just a bunch of never do wells that failed in everything else, they just found employment under a criminal.

femisplash:
This would really enhance economic stability. Nigeria can confidently meet her international obligation. However, the call for reduction in the interest rate is a dicey one, would it not further push up the inflation rate?

femisplash:
https://www.thisdaylive.com/index.php/2024/12/18/cbn-nigerias-42-01bn-external-reserves-can-finance-goods-services-importation-for-nine-months/

vanbonattel:
They are just a bunch of never do wells that failed in everything else, they just found employment under a criminal.

Dreal1247:
The Tinubu blind and paid supporters and cyper promoters on Nairaland are always the first to comment on any issue on government. They fire arrows at Mr Peter Obi and any other person who does not agree with Tinubu. The worst thing is that they can be illogical at most times as they make incoherent comments on the subject matter. Blind followers of blind.

Dreal1247:
The Tinubu blind and paid supporters and cyper promoters on Nairaland are always the first to comment on any issue on government. They fire arrows at Mr Peter Obi and any other person who does not agree with Tinubu. The worst thing is that they can be illogical at most times as they make incoherent comments on the subject matter. Blind followers of blind.

“External Reserves rose from $38.35bilion it was on September 30, 2024, to $42.01billion as of December 12, 2024.

CyrusVI:


Up Cardi B!

The Accountant at the helm of affairs and an Economist the CBN, this is what you get in return

Things are taking shape already and perpetual moaners can come cry as usual

We will get there

femisplash:
https://www.thisdaylive.com/index.php/2024/12/18/cbn-nigerias-42-01bn-external-reserves-can-finance-goods-services-importation-for-nine-months/

professorPABX:
Mr President. You have worked very hard.

IBB said he was threatened not to handover power to MKO ABIOLA.

In the historical Presidential Debate between Chief ABIOLA and Bashir Tofa, I remembered vividly Bashir Tofa said he is going to peg Naira to Dollar. He said it should be =N=10 to $1. Chief ABIOLA said a Glasgow Trained Accountant cannot peg Naira to Dollar. He said it cannot work. He said nobody has come out to say the exact value (real value) of NAIRA to Dollar as determined by market forces. He said he would work on the forces and parameters that determine the value of NAIRA to Dollar for Naira to come down.

The debate was explosive. Architect Tom Ikimi was on the side of Tofa (NRC) that night. Architect Tom Ikimi asked a question, ABIOLA said he doesn't answer uncivilized question. Tom Ikimi got angry. After the break, when the debate reconvened, Chief ABIOLA apologized to Architect Tom Ikimi for calling his question uncivilized. I was very young then, but I cannot forget the debate.

That debate showed the sophistication, exposure and high intellect of Chief ABIOLA. Those that opposed ABIOLA cannot withstand his sophistication, exposure, intellect and international connection that's why he was stopped by all means.

The last 18 months of Tinubu government has shown the courage, intellect and resilience of a man determined to move ahead against all odds, this is a testament of what ABIOLA would have brought to governance. Is Nigeria ready to move forward? 2025 will determine .

Welcome home Mr President. Brainstorming session continues as many politicians, captain of industries and technocrats gather again in Lagos to develop strategy for tasks ahead.