Lagos, August 22 – Nigeria’s external reserves have surged to a new four-year peak, reaching an impressive $41 billion as of August 2025, according to the latest data from the Central Bank of Nigeria (CBN).
This significant increase marks a 12.42% rise year-on-year and is the highest level recorded since March 2021, providing a robust buffer for the nation’s economy and bolstering confidence in the Naira.
The remarkable growth in reserves is being hailed by financial analysts and economists as a direct result of the CBN’s well-executed and strategic policies aimed at stabilizing the foreign exchange market. The Naira, which has seen some volatility in recent years, has shown a gradual appreciation, strengthening marginally against the U.S. dollar in the official market.
Mr. Olayemi Cardoso, governor of the CBN spearheading the apex bank’s reforms, which have focused on creating a more transparent and efficient FX ecosystem, have been pivotal, and have helped to restore confidence and attract foreign capital.
Meanwhile, the resurgence of foreign investor interest in Nigeria’s financial markets has been a key driver. This is fueled by attractive carry-trade returns, improving macroeconomic conditions, and the stable FX environment.
Consistent inflows from Nigerians in the diaspora have also contributed to the foreign exchange reserves.
The increase in crude oil production and reduced oil losses have provided a stronger revenue stream, boosting the country’s foreign exchange earnings.
The significant increase in reserves also provides the CBN with greater flexibility to manage market liquidity and ensure exchange rate stability through its intervention strategies.
