Nigeria’s FX Reserves Reach Highest Level Since 2019
Atume Terfa
Nigeria’s foreign-exchange reserves surged to a six-year high, as the Central Bank of Nigeria (CBN) reported a gross reserves balance of US$45.04 billion as of December 4, 2025 — the strongest level since July 2019.
Analysts attribute the build-up to several factors: renewed foreign-portfolio inflows, robust remittances, increased oil export receipts, and a highly oversubscribed Eurobond issuance in November.
The recent rebound has not been abrupt. Reserves had crossed US$42 billion as of September 2025 — marking the highest level since 2019 at the time. A steady upward trajectory through the final quarter has seen the CBN gradually restore external liquidity buffers that had been depleted in 2022–2023.
Officials say the strengthened reserve position — now providing more than 10 months’ import cover — offers a crucial buffer against external shocks and enhances Nigeria’s ability to manage foreign-exchange volatility.
The improved reserves have already started reflecting in the market. The national currency, the Naira, saw modest stability as foreign exchange supply eased demand pressures in the official window.
Still, experts caution that sustaining this momentum will require continuous inflows — via oil exports, portfolio investments, and remittances — along with disciplined external-debt management and macro-economic stability.
Overall, the surge in Nigeria’s FX reserves marks a significant milestone in the country’s economic recovery, signalling renewed investor confidence and a more robust external-liquidity cushion as 2025 draws to a close.
