In October 2024, Nigeria’s foreign reserves increased to $40.2 billion, a significant rise from $38.4 billion in September. This development was announced by Olayemi Cardoso, the Central Bank of Nigeria (CBN) governor, during an investors’ meeting in Washington, D.C.

Wale Edun, Nigeria’s Minister of Finance and Economy, was also present at the meeting. He shared that the country’s reserves are growing naturally. The government decided to let the market determine the value of the naira, instead of spending large amounts to defend it. In the past, the Central Bank would spend $1 billion monthly to maintain the naira’s value. This new approach has not only saved money but also helped build investor confidence.

Edun stressed that the government is committed to transparency in managing the reserves. He assured investors that they would soon get regular updates on the country’s reserve levels. The aim is to build a stable foreign exchange supply without heavy reliance on the Central Bank’s interventions.

The positive response from investors has also been encouraging. Foreign portfolio investment (FPI) has increased, and more investors are putting their money into Nigeria’s market. Edun pointed out that Open Market Operations (OMO) auctions, held after Monetary Policy Committee meetings, have also attracted positive attention from investors.

In conclusion, Nigeria’s economic strategy is focused on building strong financial buffers and improving the country’s reserves through organic growth. By reducing Central Bank interventions and letting the market play a larger role, the government aims to achieve a stable and sustainable economy.