Nigeria’s net foreign exchange reserves have increased dramatically, rising 772 percent over two years to reach $34.80 billion by the end of December 2025, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced on Monday.
The surge marks a significant shift from the $3.99 billion recorded at the close of 2023. In his statement, Governor Cardoso noted that the net reserves—which exclude short-term liabilities—now exceed the total gross external reserves reported at the end of 2023, which were $33.22 billion.
This growth follows a broader trend of strengthening external buffers. According to the CBN, gross external reserves reached $50.45 billion as of February 16, 2026. The latest annual figures show gross reserves rose to $45.71 billion at the end of 2025, up from $40.19 billion a year earlier—an increase of $5.52 billion. Net reserves also climbed from $23.11 billion at the end of 2024 to the end-2025 figure of $34.80 billion.
Governor Cardoso attributed the improvement to enhanced transparency and credibility in foreign exchange management, which has bolstered investor confidence, attracted stronger foreign currency inflows, and refined reserve management practices. He emphasized that the focus on preserving capital, ensuring liquidity, and supporting long-term sustainability has elevated both the level and quality of Nigeria’s external reserves over the past three years.
The expansion, Cardoso stated, enhances Nigeria’s capacity to meet external obligations, supports exchange rate stability, and reinforces overall macroeconomic resilience. He described the end-2025 position as validation of the CBN’s policy reforms and external sector adjustments.
Reserves serve as a critical buffer for economies reliant on foreign currency, helping to stabilise the national currency, pay for imports, and service external debt. The substantial increase in Nigeria’s net reserves suggests a more robust shield against external shocks and volatility in global financial markets.
The CBN governor reaffirmed the bank’s commitment to maintaining adequate reserve levels, ensuring orderly foreign exchange market operations, and sustaining confidence in the country’s external position, in line with its statutory mandate.
The continued rise in reserves is likely to be closely watched by international investors and credit rating agencies as an indicator of Nigeria’s improving economic fundamentals and fiscal discipline.
