Nigeria’s foreign exchange reserves have climbed to $41.00 billion as of August 19, 2025, the highest level in 44 months, according to figures published by the Central Bank of Nigeria (CBN).
The milestone marks the strongest position since December 3, 2021, reflecting steady external accretion after months of volatility and drawdowns driven largely by external debt repayments.
The latest rebound highlights improved foreign exchange inflows and boosts the CBN’s capacity to stabilise the naira, manage liquidity, and guard against speculative pressure.
Reserves have staged a strong rally in August, adding about $1.46 billion month-to-date. The level rose from $39.54 billion on August 1 to $41.00 billion by August 19, representing a 3.69 percent growth in less than three weeks. On average, the reserves have expanded by about $81 million per day this month.
The sharp build-up began when reserves crossed the $40 billion threshold on August 7, advanced to $40.5 billion by August 12, and hit $41 billion just a week later.
Despite the surge, year-to-date growth remains modest. At $40.88 billion on December 31, 2024, the current level reflects only a 0.30 percent rise, equivalent to about $124 million. Most of the gains have been concentrated in the past five weeks, following a subdued first half of the year when reserves hovered between $37 billion and $39 billion.
Reserves had dipped to as low as $37.28 billion in early July before rebounding by over $3 billion within a month, an 8 percent increase.
The latest climb places Nigeria at its strongest external reserve position since late 2021, reversing prolonged drawdowns that weighed heavily on reserves through 2022 and 2023.
A stronger reserve base is critical for currency market confidence, improving Nigeria’s sovereign credit outlook, reassuring investors of the country’s ability to meet external obligations, and strengthening the CBN’s capacity to absorb liquidity shocks.
The CBN earlier attributed the gains to increased capital inflows, improved crude oil production, rising non-oil exports, and reduced imports. Sustaining the momentum will, however, depend on oil earnings, non-oil receipts, debt servicing, and policy direction.
For now, the sharp August build-up has placed Nigeria on firmer footing, with reserves at their highest point in nearly four years.
