Nigeria’s foreign exchange (FX) reserves climbed to their highest level in more than seven months, reaching $40.29 billion as of August 8, 2025, according to the latest Central Bank of Nigeria (CBN) data.
This represents a gain of $3.45 billion, or 9.4 per cent, from $36.84 billion on August 8, 2024, and marks the strongest level since January 17, 2025, when reserves stood at $40.29 billion.
The sustained build-up reflects stronger foreign exchange inflows, supported by elevated crude oil prices, steady remittance growth, and renewed interest from foreign portfolio investors (FPIs). Analysts say this momentum is likely to continue, underpinned by ongoing reforms to stabilise the naira and restore macroeconomic confidence.
Head of Financial Institutions Ratings at Agusto & Co.,Ayokunle Olubunmi, said the current oil market conditions and investor sentiment provide a strong foundation for reserves to remain healthy.
“Crude oil prices have stayed above $70. The positive sentiment about Nigeria, coupled with relatively high asset yields, will continue to drive FPIs. Remittances will also maintain an upward trajectory as Nigerians in the diaspora continue to acquire assets in the domestic economy,” he told THISDAY.
Cordros Research, in its latest market commentary, noted that currency stability would be anchored by, “improving FX liquidity from both domestic and foreign sources, alongside subdued demand pressures.” However, it cautioned that “there is a possibility of gradual depreciation should global pressures re-emerge, particularly if oil prices retreat or geopolitical risks heighten.”
Afrinvest Asset Management observed that Nigeria’s external buffers had been on a steady upward path in recent months.
“Looking ahead, we expect the naira to remain range-bound in the near term, supported by relatively stable FX liquidity conditions. This is underpinned by consistent inflows from oil sales, remittances, and portfolio investments, as well as reduced speculative demand in the FX market,” the firm stated.
In its H2 2025 outlook, Comercio Partners projected a significant improvement in Nigeria’s Balance of Payments (BoP), supported by the naira’s more competitive level and lower petroleum import dependence.
“By the end of 2025, we expect the BoP to grow strongly, aided by currency competitiveness that encourages exports and discourages imports. Savings from reduced oil importation are also contributing to this improvement,” the firm said.
It added that Nigeria’s reserve levels provide ample room to meet external obligations. “Looking at Nigeria’s external debt obligations, the total coupon payments for H2 2025, combined with the $1.118 billion Eurobond maturing in November, amount to $1.813 billion. Given current reserve levels, this debt service burden is covered approximately 20 times over. We project external reserves to reach approximately $43 billion by year-end,” Comercio stated.
