Nigeria’s external reserves have reached a six-year high, standing at $45.04 billion as of December 4, 2025, according to the Central Bank of Nigeria. This significant milestone marks a notable improvement from the $42.03 billion recorded on September 19, with an increase of nearly $5 billion in a few months. The last time the country’s reserves were at this level was on July 23, 2019.
The growth in reserves is likely attributed to stronger inflows, possibly driven by improved crude oil earnings, Eurobond-related transactions, or support from multilateral institutions. A healthier reserve position enhances the Central Bank’s capacity to manage pressures in the foreign exchange market, providing a cushion against external shocks.
The increase in foreign reserves is a positive development for Nigeria’s economy, indicating a stronger external position. However, despite this trend, the naira weakened to its lowest level in two months, closing at N1,450.43 per dollar on Friday. This disparity highlights the complexities of Nigeria’s economic landscape, where a strong reserve position does not necessarily translate to a stable currency.
Nigeria’s foreign reserves have been steadily increasing, reflecting improved economic management and a favorable external environment. The country’s reserve position is a critical indicator of its economic health, influencing its ability to meet international obligations and respond to economic shocks. With a strong reserve position, Nigeria is better equipped to navigate the challenges of a volatile global economy.
The Central Bank of Nigeria’s efforts to manage the country’s foreign exchange market and build reserves have yielded positive results. The increase in reserves is a testament to the bank’s monetary policy decisions and its ability to attract foreign investment. As Nigeria continues to navigate the complexities of the global economy, a strong reserve position will remain crucial in maintaining economic stability and promoting growth.
The recent surge in foreign reserves is a significant development for Nigeria’s economy, and its implications will be closely watched by investors, policymakers, and stakeholders. As the country continues to implement economic reforms and manage its external position, the growth in reserves is expected to have a positive impact on the overall economy.
