Nigerian Government reports a seven-year high in reserves, surging capital inflows, and stronger lending as signs that economic recovery is accelerating.
Nigeria’s Federal Government says the country’s economic recovery is gaining speed, citing new data from the Central Bank of Nigeria (CBN) that points to the strongest rebound in years. According to the Minister of Information, Nigeria’s foreign reserves have climbed to $46.7 billion—marking their highest level in nearly seven years and reflecting what officials describe as renewed investor confidence and improved external stability.
The minister shared the figures on his official X account, framing the development as evidence that recent policy measures are beginning to deliver tangible results. Foreign reserves, a key buffer that supports currency stability and strengthens a country’s ability to meet external obligations, have been a major focus for policymakers navigating global economic volatility and domestic fiscal pressures.
Alongside the jump in reserves, Nigeria has seen a sharp increase in foreign capital inflows. Data covering the first ten months of 2025 shows inflows totaling $20.98 billion, a dramatic 428% rise compared with the full-year figure for 2023. The government says this surge underscores global investors’ renewed willingness to reengage with Africa’s largest economy after years of inconsistent inflows and risk aversion.
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Analysts note that stronger inflow levels may ease pressure on Nigeria’s foreign exchange market, which has struggled with supply shortages and periodic volatility. Higher inflows, they say, could also help stabilize the naira and support broader macroeconomic reforms.
Federal government highlighted another indicator of strengthening recovery: growth in microfinance lending. According to the minister, lending by microfinance institutions has expanded by more than 14% in 2025. These institutions play a central role in supporting small businesses, household enterprises, and informal-sector workers—segments that collectively underpin a significant share of Nigeria’s employment and domestic commerce.
Officials argue that rising microfinance activity reflects not only stronger credit conditions but also the early impact of targeted initiatives designed to expand financial inclusion. Increased lending, they say, is helping small businesses scale operations, supporting job creation, and lifting incomes across local communities.
The Federal Government maintains that these positive indicators reinforce the direction of ongoing economic reforms aimed at achieving stable long-term growth. While challenges remain—including inflationary pressures, foreign exchange constraints, and infrastructure gaps—officials insist that the latest trends signal a meaningful turnaround.
In a statement accompanying the newly released data, the government said the figures “reaffirm Nigeria’s steady march toward sustainable economic growth and shared prosperity,” emphasizing that the reforms underway will continue to build resilience and attract long-term investment.
