Cardoso made the disclosure during the Monetary Policy Committee (MPC) briefing held on Monday, July 22, stating that the current reserves provide approximately 9.5 months of import cover—a key indicator of the country’s ability to withstand external shocks and support currency stability.

“This rebound in our external reserves reflects the outcome of deliberate policies aimed at restoring macroeconomic stability and rebuilding investor confidence,” Cardoso told reporters during the session.

The last time Nigeria’s reserves crossed the $40 billion threshold was in November 2024, when it briefly reached $40.2 billion, before dipping amid global economic headwinds and domestic fiscal pressures.

Analysts have interpreted the latest figures as a sign of recovery in Nigeria’s foreign exchange position, especially amid ongoing efforts by the Central Bank to manage liquidity, strengthen the naira, and attract foreign capital.

The MPC also voted to maintain the Monetary Policy Rate at 27.5%, citing the need to sustain gains in price and exchange rate stability.

The reserve increase comes at a time when the Central Bank is being lauded for a series of reforms, including banking sector recapitalization and adjustments to the foreign exchange framework—initiatives that have earned Cardoso recognition in the financial sector.

Despite challenges with non-performing loans in some financial institutions, as recently noted by an MPC member, the reserve growth is expected to boost investor sentiment and improve Nigeria’s credit outlook in the near term.

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Global Tensions Push Oil Prices Higher

The U.S. military’s recent attacks on Iran have deepened tensions in the Middle East, putting global oil markets on edge. Brent crude has already surged 20% in the last month.

JP Morgan warns that oil could hit $130 per barrel if the crisis worsens. This scenario could have a major impact on Nigeria’s economy largely in a positive way.

Last weekend, the U.S. bombed three nuclear facilities in Iran. President Donald Trump called the strikes a spectacular military success. But for oil markets, they signaled growing instability. Brent futures jumped over 9%, reaching $78 per barrel. West Texas Intermediate (WTI) also climbed to $75. Brent later crossed the $79 mark, its highest in months.

Nigeria Gains from Oil Price Surge

If oil hits $100 per barrel, Nigeria will earn about 33% more than its 2024 budget benchmark of $75. This means more dollars for the Central Bank of Nigeria (CBN), stronger external reserves, and a firmer grip on the naira. It also boosts Nigeria’s image among investors.

The country is already feeling the benefits. Crude oil now trades above the government’s benchmark. Reforms made over the last two years—such as fuel subsidy removal and FX market liberalisation—have reduced leakages and increased fiscal space.

Naira Shows Stability in Both Markets

Despite past volatility, the naira has been stable in 2024. Officially, it trades at about ₦1550 per dollar. On the black market, the rate hovers between ₦1580 and ₦1600 with a spread of less than 3%. This tight spread limits round-tripping and helps build investor confidence.

Foreign capital is returning. Capital imports rose by 200% in Q1 2024, hitting $3.4 billion. The capital market also saw stronger foreign inflows last year  up 137% to ₦400 billion — and the trend is continuing in 2025.

Higher Prices, But Risk Remains

Even with the good news, analysts warn of risks. The global shift to safe-haven assets during times of conflict could trigger capital flight from emerging markets like Nigeria. If global interest rates stay high due to inflation fears, money could move out of Africa and back to the U.S. or Europe.

Can Nigeria’s rising oil earnings offset this possible capital outflow? Many experts think so  especially with the country’s improving credit ratings.

Global Institutions Show Confidence

In April, Fitch Ratings upgraded Nigeria’s foreign-currency credit rating from ‘B-’ to ‘B’, citing better policy direction and economic reforms. The World Bank also raised its 2025 growth forecast for Nigeria to 3.6%, above the global average. These upgrades reflect optimism about Nigeria’s progress.

Moody’s had raised concerns about declining oil prices and high inflation. But the recent oil rally has eased those fears, especially with inflation also showing signs of slowing down.

FX Reforms Drive Inflows

Beyond oil, Nigeria’s FX market reforms are making a difference. The CBN is working with international money transfer operators (IMTOs) to boost remittances. It is also pushing local manufacturers to add value to exports  and reduce reliance on imports.

CBN Governor Yemi Cardoso recently said Nigeria could learn from China by focusing on export-led growth. He urged businesses to explore global markets in sectors like agriculture, manufacturing, and the creative industry.

Cardoso noted the creative sector alone could bring in $25 billion annually. Music, film, crafts, and digital exports all have potential to earn Nigeria more dollars.

Focus Turns to Telecom Sector

Nigeria is also targeting the telecom sector to reduce dollar outflows. The CBN is encouraging telecoms to start local production of hardware like SIM cards, cables, and towers. Last week, Airtel’s CEO met with CBN officials and asked for support to produce essential parts in Nigeria.

Reducing telecom imports could save significant FX and create local jobs.

Analysts Remain Optimistic

Dr. Muda Yusuf, head of the Centre for the Promotion of Private Enterprise (CPPE), says the oil rally will boost Nigeria’s stock market and overall economic outlook. He noted that crude remains Nigeria’s largest FX earner and accounts for a large share of government revenue.

He said:

“Rising oil prices will improve Nigeria’s fiscal balance. It will help reduce the budget deficit and attract more investment in the oil and gas sector.”

Budget Goals Within Reach, But Production Is Key

With oil prices rising, the Federal Government’s target of ₦19.5 trillion in oil revenue for 2025 looks more achievable. But one challenge remains production.

Nigeria currently produces about 1.5 million barrels per day (mbpd). Experts say boosting output is the next big hurdle. To succeed, the government must address oil theft and insecurity in the Niger Delta.

The post What Rising Oil Prices Mean for Nigeria’s Budget and Naira Stability appeared first on Housing TV Africa.

The loan came from the International Development Association, a branch of the World Bank that gives credit to developing countries.

The Federal Ministry of Finance confirmed that it asked the World Bank to cancel $9.5 million tied to unmet goals and another $0.9 million left unused. Nigeria was expected to complete several tasks, but it fell short on many

One key failure was a $4 million audit of two major agencies   the Federal Inland Revenue Service and Nigeria Customs Service. The audit was poorly done and didn’t meet global standards. The country also failed to launch a National Budget Portal, which had a $1 million budget. No proof of progress was submitted.

Another project that failed was the Revenue Assurance and Billing System. This system was meant to track foreign income from government agencies and send the money directly to the national treasury. Only 27 out of 55 agencies set up the needed accounts. The process to move the funds automatically was not in place. Contract issues and delays from the Central Bank also slowed progress.

Because of these setbacks, the system won’t be ready until August 2025. But the loan program ends in June. So the country can’t use the money even if the project is finished later.

Despite the problems, the World Bank said Nigeria made some progress. The country improved its non-oil income, reaching 153% of its 2024 target. This growth came from exchange rate changes and better digital tax systems like TaxProMax. Nigeria also published more public finance data than expected.

But capital projects were slow. The government only used 50% of the funds for construction and infrastructure, far below the 65% goal. The World Bank rated the monitoring of the project as “moderately unsatisfactory.

So far, Nigeria has used $96.04 million of the $103 million loan. The remaining $10 million is lost. At today’s exchange rate, that’s about ₦15.77 billion. That money could have funded 40 primary health care centres, 300 boreholes, or 500 electricity transformers for underserved communities. A single health centre costs ₦120 million. A borehole is about ₦20 million, and a transformer is around ₦10 million.

While losing this money, Nigeria is also working on a new project. The government has pledged $50 million to the Nigeria Wholesale Impact Investment Fund. It aims to grow the fund to $100 million and support businesses in farming, technology, and public works.

At a recent meeting in Abuja, Finance Minister Wale Edun said the goal is to create jobs and grow the economy. The fund will also work with the African Development Bank to help young business owners. Edun promised that the money would be used with full transparency and clear results.

Still, many experts worry. Economist Joseph Momoh said the problem is that Nigeria reacts too late. He believes the country fails to meet simple requirements that would unlock more funds. “We knew what was expected,” he said. “If we had met the deadlines, this money could have changed lives.”

The lost $10 million shows how poor planning and late action can cost the country badly. If Nigeria wants progress, it must act sooner and follow through.

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The latest figures, drawn from international payments data released by the Central Bank of Nigeria (CBN), highlight the mounting cost of managing the country’s external borrowing obligations. Debt servicing alone accounted for more than three-quarters (77.1%) of all international payments made by Nigeria within the four-month period, significantly higher than the 64.5% share recorded a year earlier.

Total international financial outflows during this period—including debt repayments, foreign remittances, and letters of credit—reached $2.60 billion, up from $2.07 billion in the first four months of 2024.

A breakdown of the monthly figures shows modest payments in January and February, followed by sharp increases in March and April. Specifically, March saw $632.36 million disbursed—more than double the $276.17 million paid in March 2024—while April’s figure hit $557.79 million, a 159% rise over the previous year’s $215.20 million.

This jump in payments reflects a concentration of maturing loan obligations, particularly in March and April. It also coincided with the full repayment of a $3.4 billion loan obtained from the International Monetary Fund (IMF) in 2020, under the Rapid Financing Instrument (RFI), which was intended to cushion the country’s economy during the COVID-19 pandemic and global oil market crash.

In a statement confirming the repayment, the IMF disclosed that Nigeria had settled the full amount by April 30, 2025. While the principal has been cleared, Nigeria will continue to incur additional charges under the Special Drawing Rights (SDR) framework—estimated at around $30 million annually—until its SDR holdings align with its allocated quota.

Despite the relief from repaying the IMF loan, Nigeria continues to face increasing debt-related costs. In 2024, external debt service rose to $4.66 billion, compared to $3.5 billion in 2023. Multilateral lenders accounted for $2.62 billion of that sum, with the IMF alone responsible for 35% of the total.

Looking ahead, Fitch Ratings projects Nigeria’s external debt servicing will increase further, hitting $5.2 billion in 2025. This figure includes $4.5 billion in amortisation payments and a significant $1.1 billion Eurobond repayment expected in November.

The ratings agency also highlighted persistent risks to Nigeria’s fiscal health. These include high interest costs, revenue shortfalls, and constrained fiscal capacity. Notably, a delay in a Eurobond coupon payment due in March 2025 was cited as an indicator of ongoing financial management challenges.

Fitch estimates that Nigeria’s public debt will remain around 51% of GDP through 2025 and 2026. However, with interest payments consuming a large share of government revenues, the country’s fiscal stability will remain under scrutiny in the months ahead.

The post Nigeria’s External Debt Payments Surge to $2 Billion in Early 2025 appeared first on Housing TV Africa.

This is now a long-term national policy, not a temporary fix. The goal is to support the country’s economic growth and reduce dependence on the dollar.

The announcement was posted on Wednesday morning by the Ministry of Finance via its official X (formerly Twitter) page. It responded to rising questions from the public about the future of the initiative. The Ministry stressed that the policy is a strategic move backed by the Federal Executive Council.

This policy is designed to build Nigeria’s economic strength. By using the Naira for petroleum transactions, it will lower demand for foreign currency, help local refineries grow, and boost the economy. The government also hopes it will bring more stability to fuel prices in the country.

To track progress and fix any issues, the Technical Sub-Committee met earlier this week. The meeting brought together top players from both the public and private sectors. Attendees included Finance Minister Wale Edun, FIRS Chairman Zacch Adedeji, and key figures from NNPC Limited, Dangote Refinery, the Central Bank, and several regulatory agencies.

The Ministry noted that while challenges are expected, all problems are being handled quickly through teamwork. The aim is to keep refining on track, protect Nigeria’s economy, and ensure local businesses benefit from the change.

The policy fits into a wider reform plan by the government. It encourages local production, protects foreign reserves, and creates a more reliable pricing system for fuel.

This strong backing from both government and private stakeholders shows confidence in the new system. It also highlights Nigeria’s shift towards economic strategies that focus on self-reliance and currency strength.

The post FG Locks In Naira-for-Oil Policy as Permanent Shift appeared first on Housing TV Africa.

Early in the day, the Central Bank of Nigeria acted fast. It sold $124 million at rates between N1,595 and N1,611 per dollar. This followed a $197 million sale just days before. These moves were aimed at calming the FX market. But despite the intervention, the naira continued to struggle. Demand for the dollar remained high, and supply stayed tight.

The impact was felt in the Eurobond space too. Investors began dumping Nigerian debt. Some Eurobond prices fell by up to $5. Yields jumped to 12%, a sign that borrowing costs for Nigeria could climb. Analysts believe this sell-off has more to do with global fears than local fundamentals. Yet the result is the same Nigeria may now find it harder to borrow abroad.

The main trigger for this global panic was Trump’s latest trade remarks. He floated a 10% import tax across the board. He also proposed new duties targeting goods from China and Mexico. Global investors reacted sharply.

The S&P 500 futures dropped by 3.1%. Nasdaq futures fell even harder. In Asia, Hong Kong’s stock market plunged by 13%. That’s its worst single-day crash this century. Europe also saw big drops. Germany’s DAX fell 6.4%, while the FTSE 100 lost over 5%.

This market rout could not have come at a worse time for Nigeria. The government is relying on international loans to fund its budget and key projects. Rising yields may now derail those plans. Borrowing will cost more. Fiscal pressures could increase.

The Central Bank has been proactive. But experts say more is needed than just selling dollars. A clear, long-term foreign exchange strategy is key. Traders want to know what’s next. So do foreign investors. Without strong communication, confidence may keep falling.

Nigeria’s economy is now exposed to global winds. What began as a trade war threat in Washington is now shaking policies in Abuja. Policymakers must act with urgency and precision. If not, the storm could get even rougher.

The post Naira on the Edge as Global Markets Shake from Trump’s Tariff Bomb appeared first on Housing TV Africa.

The numbers don’t add up—there are plenty of empty houses, yet millions remain without adequate housing. So, what’s fueling this crisis?

Despite a recent dip in inflation, the cost of property remains stubbornly high. The National Bureau of Statistics reported a decline in Nigeria’s inflation rate to 23.18% in February 2025, down from 24.48% in January. The Central Bank of Nigeria also maintained its Monetary Policy Rate at 27.50%, expecting inflation to ease further. But none of this has translated into lower home prices or cheaper rent. The real estate market seems immune to these economic shifts, and the reasons are as complex as they are frustrating.

Supply and Demand Imbalance

Nigeria faces a massive housing deficit, yet properties especially in highbrow areas are priced far beyond what the average Nigerian can afford. In Lagos, for example, real estate in locations like Banana Island, Ikoyi, Victoria Island, and Lekki is overpriced. This is due to limited land, soaring construction costs, and speculative investment. A similar trend is visible in cities like Accra, Dubai, Nairobi, and Johannesburg.

Rising Costs of Building Materials

Another major issue is the high cost of building materials. Nigeria imports a significant portion of its construction supplies, making home prices vulnerable to currency fluctuations and global market shifts. The rising costs of cement, roofing sheets, and finishing materials have pushed property prices even higher.

Bureaucratic bottlenecks also play a role. Expensive building approvals, high taxes, and lengthy land registration processes add to the overall cost of homeownership.

The Impact of Speculative Investment

Speculative investment is making matters worse. Wealthy investors and developers hoard land and properties, waiting for prices to rise before reselling at exorbitant rates. This artificially inflates market prices, making it even harder for middle-class and low-income buyers to enter the market.

Many of these properties remain vacant for months or even years because they are priced well above what buyers are willing to pay.

Experts Sound the Alarm

Industry experts warn that the current trajectory is unsustainable. A significant number of properties in major cities have remained unsold for over six months simply because their prices are unrealistic.

Stephen Jagun, Chairman of the Professional Practice Committee at ESVARBON, attributes the crisis to land scarcity, foreign investor interest, and lack of infrastructure. He believes a shift in focus is needed. Investors should explore emerging areas where land is still relatively affordable instead of concentrating on already overpriced locations.

The Role of Government and Developers

Jagun urges developers to embrace cost-effective building materials and sustainable construction techniques. Meanwhile, the government must implement land reforms, streamline housing policies, and invest in infrastructure to open up new areas for development.

Olufemi Oyedele, a real estate expert, highlights that overpriced real estate reflects deeper economic issues. He notes that:

• Over 100 million Nigerians live in inadequate housing.

• Millions of properties sit vacant because they are too expensive.

• The Housing Affordability Index shows a one-bedroom flat costs:

  • ₦17.5 million in Ikeja

  • ₦6.5 million in Abeokuta

  • ₦13.5 million in Abuja

Developers, he argues, must align their projects with the financial realities of the population.

Stronger Regulations Needed

Oyedele also believes stronger government intervention is necessary. He suggests:

• No one should start construction without securing financing from a mortgage bank.

• Laws should regulate abandoned properties.

• The government must increase social housing supply for low-income earners.

Kunle Awolaja, President of the African Real Estate Society, agrees. He points out that housing prices in Nigeria don’t match income levels, making homeownership difficult. He urges investors to:

• Consider alternative construction methods.

• Use financing models like cooperative housing schemes.

The Path Forward

The solution lies in a mix of government action, industry reform, and smarter investment strategies. The government must:

• Regulate speculative buying.

• Provide incentives for affordable housing.

• Invest in infrastructure projects to ease the pressure on prime locations.

• Expand road networks, water supply, and electricity to make more areas livable.

If these issues remain unaddressed, the housing crisis will only worsen. The gap between supply and affordability will continue to grow, locking millions out of homeownership.

However, if pricing is regulated, policies are enforced, and affordability becomes a priority, Nigeria’s real estate market can finally become accessible to those who need it most.

The post The Real Estate Price Trap: Why Homes in Lagos and Other Cities Remain Out of Reach appeared first on Housing TV Africa.

But the Naira depreciated to N1,537 per dollar in the Nigerian Foreign Exchange Market (NFEM)

Data published by the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,537 per dollar from N1,528 per dollar on Monday, indicating N9 depreciation for the naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N37 per dollar from N42 per dollar on Monday.

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This unexpected appreciation has sent ripples through the parallel market, leaving many traders scrambling to adjust to the rapidly shifting dynamics.

At the start of the year, the naira’s bullish momentum caught FX traders off guard. Having hovered between ₦1600/$ and ₦1800/$ for the better part of eight months, the local currency defied expectations, surging past the ₦1600/$ mark to close at approximately ₦1560/$ last weekend. This marked the first time in months that the naira has breached this psychological barrier, signaling a potential shift in Nigeria’s currency landscape.

The ripple effect has been particularly harsh on black market traders, with estimated losses ranging between ₦10 billion and ₦20 billion. Many traders, who had stockpiled dollars anticipating a seasonal surge in demand from returning Nigerians in January, found themselves on the losing end as the naira continued its rally. The typical January spike in demand failed to materialize, turning what was once a reliable profit period into a financial quagmire.

In the official FX window, the naira also showed strength, dipping below ₦1500/$ for the first time in recent history. Data from FMDQ indicated an average trading rate of ₦1,476.74/$, highlighting the currency’s resilience across both official and parallel markets. This development has fueled debates among economists and market analysts about the sustainability of the naira’s newfound strength.

While some experts dismiss the naira’s surge as a temporary blip—a classic “dead cat bounce”—others argue it reflects a genuine market correction. Comercio Partners, in its 2025 Macroeconomic Outlook, projected the naira could depreciate to ₦1800/$ by year-end, a stark contrast to its current performance. Conversely, Bismarck Rewane of Financial Derivatives Company posited that the naira is trading below its fair value, estimating its true market worth at around ₦1107/$ based on purchasing power parity.

Underlying the naira’s rebound are several macroeconomic factors. The Central Bank of Nigeria’s (CBN) commitment to maintaining high-interest rates has bolstered investor confidence, attracting foreign portfolio investments. Projections suggest the CBN might hold off on interest rate cuts until late in the year, providing further support to the naira. Additionally, Nigeria’s bond yields, nearing 20 percent, offer attractive real returns, especially if inflation trends downward.

Domestic shifts are also at play. A noticeable decline in FX balances held by commercial and investment banks suggests a pivot towards naira-denominated assets. Investors, seeking better returns, are liquidating dollar holdings to capitalize on local opportunities, including bank equities amid ongoing recapitalization efforts. For instance, Fidelity Bank’s recent public offer was oversubscribed by 238 percent, raising ₦23.77 billion.

International dynamics further complicate the picture. The U.S. dollar, while currently strong, faces structural vulnerabilities due to mounting foreign liabilities and shifting global economic alliances. The rise of BRICS, now encompassing over 50 percent of the global population and nearly 40 percent of global GDP, challenges the dollar’s dominance. Nigeria’s inclusion as a partner member could subtly bolster the naira’s standing in the long run.

Yet, challenges remain. The CBN’s delayed implementation of Bureau de Change (BDC) reforms raises questions about regulatory resolve. The proposed consolidation, aimed at curbing anti-market practices, could enhance market stability if executed effectively.

In the grand scheme, the naira’s recent gains represent more than a fleeting market anomaly. They reflect a complex interplay of local reforms, investor behavior, and shifting global economic tides. Whether this resurgence will endure or fade under external pressures remains to be seen, but for now, the naira is enjoying a rare moment in the financial spotlight.

The post Naira’s Resurgence Shakes FX Market Amid Dollar Decline appeared first on Housing TV Africa.

The appeal, brought forward by a civil society group known as Lawyers Network Against Corruption Ltd/GTE, sought a judicial review of the records that the CBN has been reluctant to disclose.

The case originated from a request made under the Freedom of Information Act (FOIA), 2011, aimed at uncovering critical details about Nigeria’s financial operations, including the total stock of demonetized coins, their disposal, and potential beneficiaries. The CBN’s resistance to this transparency push triggered legal battles that culminated in Friday’s decision.

Representing the civil society group, lawyer Ezenwa Adumnu argued that the public had the right to know the fate of demonetized coins, particularly after the CBN publicly invited bids for these coins in a 2016 newspaper advertisement. Adumnu emphasized that his client submitted a formal FOIA request in 2021, demanding comprehensive records of the coins as of March 2017 and July 2020. When the CBN failed to provide a response, legal action followed.

Initially, the Federal High Court dismissed the suit on technical grounds, asserting that the applicant failed to obtain prior permission to proceed with the case. However, the Court of Appeal found this ruling to be erroneous. Justice Abang, delivering the judgment, clarified that the FOIA does not require such preconditions for judicial review when a public institution refuses to release requested information. According to him, imposing additional hurdles on the applicant would contravene the statute’s intent to promote transparency and accountability.

The CBN, represented by lawyer Emeka Etiaba SAN, sought to defend its position by questioning the procedural approach of the applicant. Etiaba argued that the case constituted an abuse of court processes, framing the suit as a deliberate attempt to embarrass the apex bank. He also insisted that the applicant’s failure to follow established rules made the case untenable.

Despite these arguments, the Court of Appeal sided with the civil society group. Justice Abang stated unequivocally that the applicant had acted within its legal rights. The court not only overturned the Federal High Court’s dismissal but also ordered the Chief Judge of the Federal High Court to reassign the case to another judge for further review.

This legal development underscores the challenges surrounding financial transparency in Nigeria, especially regarding the management and disposal of currency deemed unfit for circulation. Under the CBN Act, the destruction of such currency is mandated to occur under strict security, with the bank historically disposing of billions of naira in demonetized coins and notes. For example, in 2020 alone, ₦698.48 million worth of unfit notes were destroyed.

Friday’s ruling is being celebrated as a victory for transparency advocates. The decision sends a strong message to public institutions about their obligations under the FOIA, reinforcing that citizens and civil groups have the right to seek accountability from government bodies without unnecessary barriers.

The case will now return to the Federal High Court, where the reassigned judge will examine the merits of the original request. The outcome could set a significant precedent for public access to financial records in Nigeria, holding powerful institutions accountable while fostering greater public trust. Whether the CBN will comply or continue to resist remains to be seen, but the court’s decision marks a pivotal moment in the fight for financial transparency.

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