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Cardoso Foresees Nigeria Achieving 2.3 million Barrels Per Day Oil Output

crude oil output

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The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria’s foreign exchange reserves will rise gradually, driven by increased oil production.

Oil output is forecast to reach 2.3 million barrels per day by mid-year, Mr Cardoso said at the launch of the 2025 macroeconomic outlook by the Nigerian Economic Summit Group (NESG) last week.

According to the central banker, Nigeria recorded foreign exchange inflows exceeding $6 billion in 2024, taking its foreign exchange reserves to more than $40 billion.

Mr Cardoso said the central bank’s priority remained maintaining price stability and bolstering market confidence. To this end, the bank aims to enhance transparency and efficiency within the foreign exchange market.

“With limited opportunities for FX arbitrage, we expect that there will be more appetite for real sector development,” he added.

He also noted that Nigeria’s economy will expand by 4.17 per cent this year, driven by ongoing reforms and stabilising inflation, which is currently at 34.8 per cent, leading the apex bank to hike interest rates by over 800 basis points in 2024.

He also spoke about the launch of the foreign exchange code, which he said would provide clear directives on the expectations of market participants, ensuring that the market operates fairly and transparently.

“We will also prioritise exchange rate stability to foster a more competitive business environment, encourage the inflow of foreign investment, and, in addition, support fiscal operations in critical sectors of the economy.

“The CBN will continue to strengthen financial institutions to enable them to effectively support the real sector,” he stated.

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