Nigeria’s net foreign exchange reserves climbed sharply to US$34.8 billion at the end of 2025, the Central Bank of Nigeria said Tuesday, signalling what officials described as a marked improvement in the country’s external position after years of currency turbulence.
Central bank governor Olayemi Cardoso said the rise from US$23.11 billion a year earlier and from just US$3.99 billion two years ago reflected stronger foreign exchange inflows, tighter reserve management and reforms aimed at restoring confidence in Africa’s largest economy.
The figures were released days after the bank reported gross reserves of US$50.45 billion as of February 16. Gross reserves stood at US$45.71 billion at the end of 2025, up from US$40.19 billion in 2024, according to the bank.
Net reserves, which exclude short-term liabilities and other obligations, are widely seen by investors as a more accurate gauge of the funds readily available to defend a currency or meet external commitments.
Cardoso described the latest data as evidence of a “fundamental strengthening” of Nigeria’s external buffers.
“The improvement reflects stronger forex inflows, better reserves management and a renewed ability to meet external obligations and steady the exchange rate,” he said in a statement late Monday.
Nigeria has struggled in recent years with acute dollar shortages, multiple exchange rate windows and sharp volatility in the naira, which eroded investor confidence and fuelled inflation in the import-dependent country.
Since his appointment in 2023, Cardoso has overseen a series of reforms at the central bank aimed at unwinding market distortions and increasing transparency in foreign exchange operations. Authorities have moved to simplify currency trading frameworks, clear backlogs of unmet dollar demand and improve communication with investors.
The reforms were introduced against a backdrop of high inflation, sluggish growth and pressure on public finances, as Nigeria grappled with the impact of lower oil revenues and heavy subsidy costs.
Analysts say the rebuilding of reserves could help stabilise the naira by providing the central bank with greater firepower to intervene in currency markets when needed.
A stronger reserve position also enhances the country’s capacity to service external debt and finance imports, easing concerns among international investors and credit rating agencies about Nigeria’s liquidity.
However, economists caution that sustaining the gains will depend on continued policy discipline and steady foreign exchange inflows, particularly from oil exports, which remain the main source of hard currency earnings.
Nigeria is heavily reliant on crude exports for government revenue and foreign exchange. Fluctuations in global oil prices and production levels have historically had a direct impact on reserve levels and the strength of the naira.
Cardoso said the central bank would continue to maintain “robust buffers” and ensure orderly operations in the foreign exchange market.
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The latest figures are likely to be closely watched by investors seeking signs that Nigeria’s reform drive is beginning to deliver tangible results. While challenges remain, the sharp increase in net reserves may offer tentative reassurance that the country’s external position is stabilising after a prolonged period of strain.
