Nigeria’s External Reserves Surpass $45 Billion, Marking Strongest Position in 6 Years
Nigeria External Reserves Surpass $45 Billion for First Time in 6 Years
Nigeria’s external reserves have crossed the $45 billion threshold, reaching $45.04 billion, according to the latest data from the Central Bank of Nigeria (CBN). This milestone reflects a significant accumulation of foreign exchange buffers, positioning the country in its strongest external reserve standing since 2019.
The increase in Nigeria’s external reserves is the result of steady inflows rather than a temporary spike. In September 2025, reserves stood at $42.03 billion, the highest level recorded since late 2019, representing a six-year peak. By November, reserves rose consistently from $43.26 billion at the start of the month to $44.67 billion by month-end. The momentum carried into early December, culminating in the $45.04 billion mark on December 4.
Economists attribute this growth to improved foreign exchange inflows, likely driven by crude oil exports, Eurobond transactions, and multilateral financing. The sustained accumulation indicates strengthened FX liquidity and enhanced capacity for the CBN to manage exchange rate pressures.
Implications for the Economy and Investors
Surpassing $45 billion offers Nigeria greater resilience in managing external obligations and financing imports. For foreign investors, this milestone signals enhanced external stability, potentially increasing confidence in portfolio and fixed-income investments. A higher reserve position also strengthens the central bank’s ability to mitigate FX volatility and support economic planning.
Market Dynamics and Exchange Rate Trends
Despite the strong reserve position, the Naira experienced renewed pressure during the festive season, closing last week at N1,454 per $1. Rising dollar demand from importers, retailers, and consumers ahead of Christmas and New Year festivities contributed to this temporary strain on the currency.
Outlook
Nigeria’s external reserves trajectory reflects a disciplined accumulation strategy, which is expected to provide a buffer against external shocks while supporting import financing and foreign investor confidence. Analysts suggest that maintaining and expanding these reserves will be critical to sustaining macroeconomic stability in the coming fiscal period.
