Nigeria’s foreign exchange reserves recorded a sharp rise at the end of 2025, with net reserves climbing to $34.80 billion, according to Central Bank of Nigeria (CBN) Governor Olayemi Cardoso.
The increase marks a dramatic improvement from $23.11 billion in 2024 and just $3.99 billion in 2023, reflecting what the CBN described as “substantial strengthening in both the level and quality of Nigeria’s external buffers over the past three years.”
In a statement, Cardoso noted that gross external reserves reached $50.45 billion as of February 16, 2026, rising by $5.52 billion from 2024, and emphasized that the gains were underpinned by “stronger external sector fundamentals and sustained policy reforms.”
“The 2025 net reserve position alone exceeded the total gross reserves recorded at the end of 2023, which stood at $33.22 billion,” Cardoso said, highlighting the progress achieved through transparency in foreign exchange management, improved investor confidence, and better reserve practices aimed at preserving capital and ensuring liquidity.
Cardoso emphasized, “Without market confidence, no matter what you do, you’ll find you will significantly sub-optimise.”
Economic analysts welcomed the development, viewing it as a positive signal for Nigeria’s macroeconomic stability.
Dr. Funmi Adeoye, a senior economist at the University of Lagos, said: “The reserve accumulation is a strong indicator that Nigeria is becoming more resilient to external shocks. Higher forex reserves improve the CBN’s capacity to stabilize the naira and meet foreign obligations.”
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A foreign exchange strategist at a Lagos-based investment bank, who requested anonymity, noted: “The combination of rising non-oil exports and remittances is critical. It not only strengthens the reserves but also reduces pressure on the domestic currency market. This positions Nigeria better for future economic growth.”
Analysts say the robust reserve levels could enhance investor confidence, support monetary policy, and provide a buffer against external shocks such as volatile oil prices or global market fluctuations.
“The continued build-up of reserves signals that the CBN’s strategies—particularly in forex management—are effective,” said Dr. Adeoye. “It also provides room for the central bank to intervene in the currency market when necessary, ensuring stability in exchange rates.”
Governor Cardoso reaffirmed the CBN’s commitment to maintaining adequate buffers and sustaining confidence in Nigeria’s external position, stating that ongoing reforms and prudent management would remain central to preserving the nation’s macroeconomic resilience.
Stakeholders believe that if the trends continue, Nigeria could further strengthen its creditworthiness, attract foreign investment, and stabilize domestic prices, contributing to broader economic recovery.