Nume Ekeghe

Nigeria’s external reserves climbed to $41.66 billion as of September 11, 2025, marking it the highest level in nearly four years. The last time reserves were in this range was on November 5, 2021, when they stood at $41.70 billion, according to Central Bank of Nigeria (CBN) data.

The latest figure underscores a remarkable run of uninterrupted daily accretion spanning six weeks. From August 1 through September 11, 2025, Nigeria’s reserves recorded steady increases for 28 consecutive trading days, reflecting one of the longest upward streaks in recent times.

On a year-on-year basis, the reserves expanded by 13 per cent, compared with $36.81 billion recorded on September 11, 2024. The accretion provides the apex bank with a stronger buffer to manage external shocks, enhance market confidence, and sustain stability in the foreign exchange market.

The steady build-up has been evident throughout 2025. This trajectory points to a consolidation of gains from improved oil receipts, enhanced foreign investment inflows, and tighter monetary policy that has reduced speculative activities in the foreign exchange market.

In his personal statement at the last Monetary Policy Committee (MPC) meeting, member Bala Moh’d Bello highlighted that the naira exchange rate had remained relatively stable, supported by increased investor confidence and recent adjustments to the FX management framework. He added that speculative demand had declined, paving the way for greater transparency and market-driven price discovery.

The upward movement in reserves also comes at a critical time for Nigeria, providing greater resilience in the face of external vulnerabilities. 

Bello stated: “In the external sector, the naira exchange rate has remained relatively stable, reflecting the benefits of tighter liquidity conditions, increased investor confidence, and the effective implementation of recent adjustments to the foreign exchange (FX) management framework.

“Speculative activities in the FX market have declined significantly, fostering greater transparency and promoting market-based price discovery. This stability is expected to persist over the medium term, supported by rising external reserves which stood at US$40.11 billion as of July 18, 2025, equivalent to approximately 9.5 months of import cover.”

According to analysts at Cowry Assets Management: “The incremental build-up in the reserves, provides a critical buffer against external vulnerabilities such as volatile oil prices and currency pressures. It also enhances the Central Bank of Nigeria’s (CBN) capacity to intervene in the foreign exchange market when necessary, thereby helping to stabilise the naira.”

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