Nigeria’s external reserves have risen to $42.225 billion, the highest in over six years, driven by improved oil output, tighter forex policies, stronger remittances, and investor confidence.
Nigeria’s external reserves have climbed to $42.225 billion as of September 25, 2025, the highest level in more than six years, according to fresh data from the Central Bank of Nigeria (CBN). The reserve rose by over $692 million in just 18 days and has been on a steady upswing since mid-July, despite global oil prices remaining below the federal budget benchmark of $75 per barrel.
Analysts attribute the surge to improved oil production, stronger macroeconomic fundamentals, and growing autonomous foreign exchange inflows. “First is the fact that our oil output has improved over what it used to be… Secondly, we now have a much better managed NNPC,” said Dr Muda Yusuf, former Director General of the Lagos Chamber of Commerce and Industry. He also cited rising diaspora remittances and foreign loans that boost dollar holdings.
Afrinvest’s Head of Research, Damilare Asimiyu, noted that reserves now cover over nine months of imports, adding, “This signals a positive outlook for Nigeria’s external sector stability.”
A Bureau De Change operator, Abubakar Ardo, highlighted tighter CBN policies and increased investor interest: “The combined effect of higher oil receipts, tighter forex policies, increased remittances, and cautious investor confidence is what is sustaining the reserves at this level.”
CBN Governor Olayemi Cardoso reported reserves at $43.05 billion by late September and a second-quarter current account surplus of $5.28 billion. “Reforms have stabilised the economy, restored investor confidence, and built a platform for sustainable growth,” he said.
Experts caution that sustained oil output and careful debt management remain critical to maintaining the positive trajectory.