Nigeria’s external reservesNigeria’s external reserves have surged to $41.66 billion, marking the highest figure recorded in almost four years. The last occurrence of such a level was on November 5, 2021, when reserves reached $41.70 billion.
As of September 11, 2025, this latest milestone follows a remarkable period of consistent growth. Over 28 consecutive trading days, from August 1 to September 11, the reserves have risen uninterrupted, representing one of the longest periods of sustained growth in recent history.
In comparison to the same timeframe last year, when reserves stood at $36.81 billion, this reflects a notable 13 percent increase year-on-year. This rise significantly strengthens the Central Bank of Nigeria’s capacity to shield against external economic shocks, enhance market confidence, and ensure stability in the foreign exchange market.
The steady accumulation of reserves throughout 2025 is attributed to improved oil revenues, increased foreign investment inflows, and a stricter monetary policy that has curtailed speculative activities in the foreign exchange market.
This reserve growth is timely for Nigeria, bolstering the nation’s ability to navigate global economic uncertainties. During a recent Monetary Policy Committee meeting, member Bala Moh’d Bello remarked on the relative stability of the naira exchange rate, attributing it to heightened investor confidence and recent reforms in foreign exchange management.
Bello emphasized, “Speculative activities in the FX market have diminished significantly, promoting greater transparency and facilitating market-based price discovery.” He expressed optimism that this stability would persist over the medium term, underpinned by the increasing external reserves.
Analysts at Cowry Assets Management have praised this growth, noting that the rising reserves serve as a vital buffer against external vulnerabilities, including fluctuating oil prices and currency pressures. They underscored that it enhances the Central Bank’s ability to intervene in the foreign exchange market when necessary, contributing to the stabilization of the naira.
