Nigeria’s foreign exchange reserves rose to $41bn on August 19, 2025, the highest level recorded in 44 months, according to data from the Central Bank of Nigeria.
This marks the highest level since December 3, 2021, and signals a significant recovery following months of depletion, mainly due to pressure from external debt repayments.
The reserves have experienced a strong rally in August, increasing by $1.46bn month-to-date, from $39.54bn on August 1 to $41bn on August 19. This represents a 3.69 per cent increase in less than three weeks. The growth has been steady across the period, with only minor pauses.
The surge began in early August when reserves crossed the $40bn mark on August 7, after closing July at just under $39.4bn. By August 12, reserves had reached $40.5bn, and the momentum continued, pushing reserves past $41bn just a week later.
On average, the reserves have grown by $81m per day in August, reflecting an improvement in foreign exchange inflows relative to outflows. This increase is a positive development for the CBN, strengthening its ability to stabilise the naira and manage liquidity in the official market.
It also enhances the bank’s capacity to defend against speculative pressures. While the monthly growth has been significant, the year-to-date performance shows more modest gains.
Nigeria’s reserves stood at $40.88bn as of December 31, 2024, and have since risen by $124m, or 0.30 per cent, to $41bn. The bulk of the increase has come in the last five weeks, following a relatively subdued first half of the year.
Between January and June 2025, reserves fluctuated within the range of $37bn to $39bn, driven by oil price fluctuations, debt obligations, and FX market interventions. However, since July, reserves have surged by over $3bn, representing an 8 per cent growth within a month.
At $41bn, Nigeria’s reserves are at their highest since late 2021, a significant improvement after the prolonged decline in reserves throughout 2022 and 2023, when levels struggled to remain above $38bn.
A stronger reserves position is crucial for Nigeria’s economic stability. It improves the country’s sovereign credit outlook, reassures investors of the government’s ability to meet external obligations, and bolsters the CBN’s capacity to manage liquidity shocks.
The rise to $41bn signals improved foreign exchange inflows, potentially from increased oil revenues or portfolio flows. Earlier, the CBN reported continued stability in the foreign exchange market, citing higher capital inflows, improved oil production, rising non-oil exports, and reduced imports.
