Nigeria’s net foreign exchange reserves increased to $34.8 billion in 2025, according to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso.
Cardoso disclosed the figure while providing an update on the country’s external financial position, stating that Nigeria’s external buffers have strengthened significantly over the past year.
He explained that the growth in net reserves reflects improved foreign exchange inflows, tighter monetary policy measures, and ongoing reforms aimed at stabilising the naira and restoring investor confidence.
Net foreign reserves represent the portion of the country’s gross external reserves that are readily available after accounting for short-term liabilities such as swaps and other obligations. The metric is often considered a more accurate indicator of a nation’s capacity to meet external commitments and manage currency volatility.
According to Cardoso, the improvement in reserves is part of broader efforts by the apex bank to rebuild confidence in Nigeria’s foreign exchange market. Over the past year, the CBN has implemented a series of policy adjustments, including exchange rate reforms, enhanced transparency in FX reporting, and measures to clear outstanding foreign exchange backlogs.
The governor noted that strengthening reserves remains a key priority for the bank as it seeks to enhance macroeconomic stability.
“Our focus remains on building a resilient external sector capable of withstanding global shocks,” Cardoso said, adding that the increase in reserves signals renewed confidence among foreign investors and development partners.
Economic analysts say higher reserves provide the CBN with greater capacity to support the naira, meet external debt obligations, and cushion the economy against fluctuations in global oil prices — a critical factor for Nigeria, which relies heavily on crude oil exports for foreign exchange earnings.
In recent years, Nigeria’s reserves have fluctuated due to declining oil production, capital outflows, and foreign exchange market distortions. However, reforms introduced in 2023 and 2024, including exchange rate unification and improved oil revenue remittances, have contributed to a gradual recovery.
Cardoso also highlighted the importance of diversifying foreign exchange sources beyond oil exports. He reiterated the CBN’s support for policies that encourage non-oil exports, diaspora remittances, and foreign direct investment.
Market observers have linked the improvement in net reserves to increased foreign portfolio inflows following efforts to enhance transparency and restore policy credibility. The clearing of verified FX obligations has also helped ease concerns among international investors.
While the CBN did not immediately provide a breakdown of the gross reserves figure relative to net reserves, analysts say the net position offers clearer insight into Nigeria’s liquidity strength.
The development comes amid ongoing efforts by the federal government to stabilise inflation, which has remained elevated, and to boost economic growth through structural reforms.
Cardoso reaffirmed the central bank’s commitment to maintaining disciplined monetary policy and strengthening coordination with fiscal authorities to sustain economic recovery.
“With stronger reserves, we are better positioned to ensure exchange rate stability and support sustainable growth,” he said.
Nigeria’s external reserve position is closely watched by investors, credit rating agencies, and multilateral institutions as a key indicator of economic health and policy effectiveness.
