Nigeria’s Forex Reserves Surge to $41 Billion, Highest in Nearly Four Years

Nigeria’s foreign exchange reserves have soared to $41.00 billion as of August 19, 2025, marking their highest level in 44 months, according to fresh data from the Central Bank of Nigeria (CBN).

This is the strongest position since December 3, 2021, representing a significant rebound after a prolonged period of reserve depletion caused by external debt repayments and currency market volatility.

The sharp uptick underscores improved forex inflows and bolsters the CBN’s ability to stabilise the naira, manage domestic liquidity, and defend against speculative attacks on the currency.

The reserve build-up has been especially strong in August, with $1.46 billion added month-to-date, rising from $39.54 billion on August 1 to $41.00 billion by August 19—a gain of 3.69% in under three weeks, averaging approximately $81 million daily.

Reserves crossed the $40 billion mark on August 7, climbed to $40.5 billion by August 12, and hit the $41 billion milestone just a week later.

Despite the recent surge, year-to-date growth remains modest. Reserves were at $40.88 billion at the end of December 2024, meaning the current level reflects a gain of only $124 million, or 0.30% since the start of the year.

The real turnaround began in July, when reserves dipped to a low of $37.28 billion. Since then, Nigeria has added over $3 billion in just five weeks—an 8% increase that has restored confidence in the country’s external position.

This rebound marks a significant shift after sustained drawdowns throughout 2022 and 2023, placing Nigeria in its most favorable reserve position since late 2021.