Nigeria’s foreign exchange reserves have reached an impressive $42.03bn as of September 19, 2025, marking the highest level seen in six years.
This represents a notable recovery from earlier in the year, bringing optimism to the country’s economic outlook, especially regarding its foreign exchange stability. The last time reserves were at such levels was in September 2019, when they stood at $42.05bn.
The latest figures from the Central Bank of Nigeria (CBN) show that reserves have steadily grown over the past few months, bouncing back from the lowest point of $37.18bn recorded in July 2025. This resurgence is seen as a direct result of increased foreign exchange inflows, particularly from oil exports, and more cautious outflows from the economy. With reserves growing by $610.8m (or 1.47%) from September 1 to 19, the trend indicates sustained progress and marks a strong foundation for exchange rate management.
The current rise in reserves stands out not only due to its magnitude but also because of its consistency. Every trading session this month has recorded an increase, with the reserves climbing by $40m between September 18 and 19 alone. The performance is attributed to steady oil revenues, improved external borrowings, and a more controlled management of foreign exchange interventions.
The CBN’s ability to stabilise the foreign exchange market is greatly enhanced by the new reserve levels, providing a greater buffer to defend the naira and meet external financial obligations. Furthermore, the boost in reserves strengthens Nigeria’s import cover, an essential indicator for foreign investors, international ratings agencies, and lenders alike.
Economic analysts and experts have pointed out that this surge in foreign exchange reserves will likely attract increased portfolio investments, if policy consistency continues.
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“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,” said market analysts at Cowry Assets Management.
However, there are cautions regarding potential risks that could threaten the momentum. Global financial uncertainties, a drop in oil production, or sudden reversals in portfolio inflows could impede the rally. Nonetheless, analysts believe that with proper fiscal and monetary coordination, Nigeria could continue to experience steady growth in reserves, which may even surpass the levels reached in late 2019.
The resilience of Nigeria’s foreign exchange reserves amidst global challenges signals a positive shift for the nation’s economic future. If the momentum continues into the fourth quarter of 2025, the country may solidify its position as an emerging market leader, contributing significantly to its efforts in achieving long-term economic stability.
As the CBN works to maintain this upward trajectory, experts remain hopeful that these developments will not only stabilise the naira but also restore international confidence in Nigeria’s financial resilience.
