Nigeria’s foreign reserves hit $41bn, strongest level since 2021

Nigeria’s external reserves have climbed to $41 billion as of August 19, 2025, the highest figure in nearly four years, according to fresh data from the Central Bank of Nigeria (CBN).

This marks the country’s strongest reserves position since December 3, 2021, reflecting weeks of steady inflows after months of pressure from debt repayments and volatile markets.

The rally gathered pace in August, with reserves adding $1.46 billion so far this month — up 3.69% in less than three weeks. Levels rose from $39.54 billion on August 1, crossed the $40 billion mark on August 7, reached $40.5 billion by August 12, and hit $41 billion a week later. On average, reserves have been rising by around $81 million per day.

The sharp build-up strengthens the CBN’s hand in stabilising the naira, managing liquidity, and warding off speculative attacks in the official FX market.

Year-to-date and longer-term trendReserves began the year at $40.88 billion on December 31, 2024. The latest figure represents a modest gain of about $124 million, or 0.30%, showing that most of this year’s progress has come in the past five weeks.

Between January and June, reserves hovered between $37 billion and $39 billion, dipping as low as $37.28 billion in early July before rebounding sharply. The recent upswing has added more than $3 billion — an 8% jump within a month — and restored confidence in Nigeria’s external position.

The $41 billion milestone underscores Nigeria’s improved FX inflows, likely boosted by crude oil receipts, portfolio investments, and higher non-oil exports. A stronger reserve base bolsters investor confidence, enhances the nation’s credit outlook, and demonstrates the CBN’s ability to absorb market shocks.

The CBN has previously pointed to “increased capital inflows, improved crude oil production, rising non-oil exports, and reduced imports” as factors supporting currency stability.

Sustaining this momentum will require maintaining robust oil earnings, expanding non-oil FX sources, meeting debt obligations, and ensuring consistent policy direction.

(NAIRAMETRICS)