Nigeria’s external reserves climbed to $41.89 billion by mid-September, marking their strongest level in months.
Yet the naira still lost ground, dropping ₦9.88 against the dollar at the official market on Wednesday.
Weak Investment Flows
The Central Bank of Nigeria reported that the currency closed at ₦1,494.01 per dollar, up from ₦1,484.13 the previous day.
Meanwhile, traders in the parallel market held the line at ₦1,525, and GTBank kept its international transactions rate steady at ₦1,515.
Although strong remittances and foreign portfolio inflows drove the rise in reserves, policymakers cautioned that Nigeria cannot rely on them alone.
At the last MPC meeting, committee member Aloysius Uche Ordu drew attention to the country’s poor record in attracting long-term foreign direct investment.
In 2024, Nigeria secured only $1 billion in FDI, far below inflows into India, Indonesia, and Egypt.
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Calls For Action
Therefore, Ordu urged the government to act decisively.
He argued that ministries covering trade, industry, minerals, technology, finance, and agriculture, alongside security agencies, must coordinate to build the investor confidence Nigeria needs.
Without this, he warned, the dream of transforming the economy into a trillion-dollar powerhouse will remain out of reach.
In contrast, CBN Deputy Governor Emem Usoro struck a more upbeat tone.
She pointed out that higher FX turnover, market reforms, and greater transparency now attract investors and strengthen reserves.
Ultimately, Nigeria’s story remains mixed.
On one hand, reserves keep rising; on the tother, weak investment keeps the naira fragile.
