Nigeria’s external reserves have climbed to their highest point in six years, surpassing the $42 billion mark for the first time since September 2019. According to data released by the Central Bank of Nigeria (CBN), reserves stood at $42.03 billion on September 19, 2025, signaling a strong rebound from earlier lows this year.
The last time reserves were higher was on September 26, 2019, when they hit $42.05 billion. Since then, external buffers have been pressured by falling oil prices, capital outflows, rising import demand, and repeated interventions in the foreign exchange market.
What makes the current increase notable is its consistency. Every trading session in September has recorded growth, with 13 consecutive daily increases across 14 reporting days. Between September 1 and 19, reserves expanded by $610.8 million, or 1.47 percent, averaging about $47 million daily.
Between September 15 and 19 alone, reserves jumped by nearly $583 million in four business days, underscoring stronger inflows and fewer outflows. On September 8, the reserve stock stood at $41.57 billion, but within 11 days, it had grown by $461.8 million.
Compared to August 29, when reserves were at $41.31 billion, the total is now higher by $727.3 million. Year-to-date, reserves have risen by $1.15 billion or 2.83 percent, climbing from $40.88 billion at the close of 2024.
Earlier in July, reserves slumped to $37.18 billion, the lowest in 2025, raising concerns about Nigeria’s ability to defend the naira and meet external obligations. Since then, the country has seen a dramatic turnaround, with reserves rebounding by $4.85 billion, a 13.05 percent recovery.
The fresh peak not only surpasses all earlier levels of 2025 but also restores investor confidence in Nigeria’s external buffers, which remain vital for exchange rate management, market stability, and debt servicing.
Analysts Project Further Gains By Year-End
The CBN’s strengthened position increases its ability to stabilize the foreign exchange market and improve Nigeria’s import cover, a measure of how many months of imports can be financed from reserves. Higher import cover typically signals stronger credibility with investors, lenders, and international ratings agencies.
Economists argue that the six-year high delivers a psychological boost that could attract more portfolio inflows, provided policy consistency and competitive yields are maintained. It also reassures markets of Nigeria’s capacity to meet external obligations, including debt repayment and funding imports.
Market analysts at Cowry Assets Management described the September rally as a milestone for the country’s financial stability. In their latest weekly report, they projected reserves could reach $45 billion by year-end. “The combination of steady offshore inflows, improved oil earnings, and planned external borrowings should keep reserves on an upward trajectory in the coming months,” the analysts noted.
“With stronger reserves, the CBN will have greater flexibility to sustain its interventionist approach in the FX market, which in turn should help maintain the relative stability of the naira.
“Global financial volatility, a sudden reversal in portfolio inflows, or weaker oil production could challenge the resilience of the current momentum. Nevertheless, the build-up represents a significant achievement for Nigeria at a time when many emerging markets are facing external vulnerabilities.”
Cowry Assets Management Analysts
The sustainability of the rally, experts say, rests on sustained inflows from oil exports, non-oil revenues, remittances, and portfolio investments. Any downturn in crude production, decline in global prices, or speculative pressure could stall the current momentum, leaving the CBN with renewed challenges to keep the naira stable.
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