Nigeria’s foreign exchange (FX) reserves have climbed to $41 billion as of August 19, 2025, marking the country’s strongest reserves position in nearly four years.
According to an analysis by TheCable Index released on Thursday, the reserves have steadily increased throughout the month, reflecting a 3.69 percent rise from $39.54 billion on August 1 to the current level of $41 billion.
This is the highest point since December 3, 2021, based on official data from the Central Bank of Nigeria (CBN).
Steady Growth in August
The reserves showed consistent upward momentum in August:
- August 1 – $39.54 billion
- August 6 – $39.99 billion
- August 12 – $40.64 billion
- August 18 – $40.96 billion
- August 19 – $41.00 billion
This gradual rise highlights sustained inflows and improving economic fundamentals.
CBN’s Position on Stability
The Governor of the Central Bank, Olayemi Cardoso, had earlier emphasised the bank’s commitment to strengthening Nigeria’s FX position.
Speaking at the conclusion of the Monetary Policy Committee (MPC) meeting on July 22, 2025, Cardoso noted that Nigeria was witnessing “sustained stability in the foreign exchange market.”
He attributed the positive outlook to a combination of factors, including:
- Improved crude oil production
- Rising non-oil exports
- Increased capital inflows
- Reduced import dependence
Cardoso also disclosed that as of July 18, 2025, gross external reserves had already reached $40.11 billion, providing the country with about 9.5 months of import cover—well above the international benchmark of three months.
Significance of the Reserves Surge
The latest reserves milestone signals renewed investor confidence and offers the CBN greater flexibility in managing currency pressures. It also strengthens Nigeria’s buffer against external shocks, particularly in the face of fluctuating oil prices and global economic uncertainties.
Analysts say the upward trend, if sustained, could ease pressure on the naira, stabilise inflation, and encourage further foreign investments.
