Nigeria’s Foreign Exchange Reserves Climb by $4.39bn Over 12 Months

Nigeria’s foreign exchange reserves increased by $4.39 billion over the past year, reaching $45.24 billion. This marks an approximate 10.8% year‑on‑year gain in the country’s external reserves.

The reserves experienced a dip early in 2025, falling from about $40.87 billion at the end of 2024 to roughly $37.93 billion by April, largely due to foreign debt‑servicing and foreign exchange market interventions by the Central Bank of Nigeria. Over the first half of the year, the reserves shed around $3.67 billion.

However, in the second half of the year, the reserves regained momentum, rising steadily and crossing the $40 billion mark in August. They continued to strengthen through November and mid‑December, before settling at $45.24 billion in late December.

The Central Bank attributed the improvement to efforts in clearing the FX backlog, enhancing market transparency, and restoring investor confidence. Credibility and increased transparency have helped attract long‑term investment into the Nigerian economy.

Analysts have also pointed to stronger investor confidence, improved oil receipts, and increased remittances as contributing factors to the rise in reserves, though some caution that reliance on sources like Eurobond issuances and remittances carries its own risks.