Nigeria’s net foreign exchange reserves rose sharply to $34.8 billion at the end of 2025, marking a significant recovery from $3.99 billion recorded two years earlier, the country’s central bank governor has announced.
Governor Olayemi Cardoso said the surge reflects stronger external fundamentals and policy reforms that have helped restore confidence in the foreign exchange market.
The figures come days after the Central Bank of Nigeria (CBN) reported gross reserves of $50.45 billion as of 16 February, underlining what Cardoso described as a “fundamental strengthening” of Nigeria’s external buffers.
In a statement issued late Monday, Cardoso disclosed that net reserves increased from $23.11 billion at the end of 2024 to $34.8 billion by the close of 2025.
Gross reserves also improved during the same period, rising from $40.19 billion to $45.71 billion.
The central bank said the upward trend signals improved foreign exchange inflows, more disciplined reserves management and a renewed capacity to meet external obligations while supporting exchange rate stability.
Since assuming office in 2023, Cardoso has introduced measures aimed at improving transparency in the forex market and streamlining currency rules to unwind years of distortions and volatility.
These reforms included clarifying FX trading guidelines, addressing backlogs in unmet foreign exchange demand and tightening monetary policy to curb inflationary pressures.
Analysts say the improved reserve position could bolster investor confidence, support the naira and enhance Nigeria’s credit outlook.
Cardoso noted that the rebound in reserves validates ongoing policy reforms and strengthens Nigeria’s ability to withstand external shocks, including fluctuations in global oil prices and capital flow volatility.
“The improvement reflects stronger forex inflows, better reserves management and a renewed ability to meet external obligations and steady the exchange rate,” he said.
Economists say sustained reserve growth could provide the CBN with greater flexibility in managing liquidity and stabilizing the currency, though they caution that maintaining the gains will depend on continued reforms, oil revenue performance and broader macroeconomic stability.
With Nigeria’s foreign exchange position improving, attention is now shifting to how effectively the central bank can consolidate the recovery and ensure long-term currency stability.
