The Central Bank of Nigeria (CBN) has said it cannot introduce fresh intervention programmes due to outstanding liabilities of N4.69 trillion from previous schemes, limiting its capacity to support new initiatives.
Speaking at the 303rd Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, CBN Governor Olayemi Cardoso disclosed that a review of past interventions showed that the apex bank had issued a total of N10.93 trillion over the last decade.
“We did a survey, a small study, of interventions in the central bank. And we came out with certain numbers, which showed that the total amount of intervention was about N10.93 trillion, which goes back perhaps 2010 or 2013,” Cardoso said.
“Out of that, we still have outstanding of N4.69 trillion, which represents about 43 percent of those interventions. Since we have come, we’ve been able to reign back about N2 trillion. This is a humongous amount of money,” he added.
Cardoso explained that the lack of funds prevents new economic interventions, but noted that this has helped curb distortions in the market. He said the bank is now focused on encouraging private sector development, acknowledging that past interventions created moral hazards and discouraged competition.
External Reserves Rise by 9%
The CBN governor also reported that Nigeria’s gross external reserves rose by 9.19 percent in two years, reaching $46.70 billion on November 14, 2025, up from $42.77 billion at the end of September 2025. He said the reserves are sufficient to cover 10.3 months of imports for goods and services.
Cardoso expressed optimism about the global economic outlook, noting that recovery is expected in the near to medium term, “underpinned by improved trade negotiations, accommodative monetary policy in advanced economies, and easing geopolitical tensions.”
However, he cautioned that risks remain, including “the potential for increasing protectionism, geo-economic fragmentation, and likely resurgence of trade tensions between the U.S. and its major trading partners.”
He added that global inflation is projected to decline steadily through 2026, driven by past monetary tightening, improved supply chains, and softer commodity prices, though it will likely remain above pre-pandemic levels in the short term.
PMI Hits Five-Year High
Cardoso further revealed that Nigeria’s Purchasing Managers’ Index (PMI) rose to 56.4 points in November 2025, the highest in five years, signalling stronger economic growth in the third and fourth quarters.