CBN Wants more FX Earnings from Oil, Gas, Non-oil Sectors
The Central Bank of Nigeria (CBN) has called on the Federal Government to intensify efforts to improve Nigeria’s foreign exchange (FX) earnings across key sectors, including oil, gas, and non-oil exports.
The CBN Governor Olayemi Cardoso made the call after the Monetary Policy Committee’s (MPC) 300th meeting held on May 19 and 20th in Abuja.
The CBN reviewed both domestic and global economic conditions and decided to retain all key monetary policy parameters, including the Monetary Policy Rate (MPR) at 27.5%.
While acknowledging relative stability in the foreign exchange market, the CBN governor noted that the need for the Federal Government to do more in boosting FX inflows to support the naira and reduce pressure on the market.
“The Committee called on the fiscal authority to strengthen current efforts at enhancing foreign exchange earnings, especially from gas, oil and non-oil exports,” the governor stated in the communique.
The Committee noted that the current FX market reforms have yielded encouraging results, including a narrowing gap between official and parallel market rates and a positive balance of payments position. Nigeria’s gross external reserves rose by 2.85% to \$38.90 billion as of May 16, 2025, offering 7.6 months of import cover.
However, the CBN warned that persistent foreign exchange demand pressures, structural bottlenecks, and declining crude oil prices largely due to increased output from non-OPEC producers could undermine FX stability and fiscal performance.
He said with global economic uncertainties and domestic constraints posing continuing risks, the CBN urged a coordinated policy approach between monetary and fiscal authorities to enhance non-oil exports and reduce overdependence on oil revenue.
The Committee also reaffirmed the CBN’s commitment to sustaining FX market reforms and called for improved oversight and targeted incentives to strengthen export capacity, especially in agriculture, solid minerals, and manufacturing.
