By Ada Samson, Abuja
Nigeria’s foreign exchange reserves have increased to $39.99bn as of 6 August 2025, marking a 9.9% rise from $36.39bn recorded on the same date in 2024, according to the latest data from the Central Bank of Nigeria (CBN).
The growth reflects improved foreign exchange inflows and ongoing economic reforms aimed at rebuilding macroeconomic confidence.
Analysts suggest the upward trend is likely to continue, supported by higher crude oil prices, steady remittance flows, and renewed interest from foreign portfolio investors in Nigerian assets.
Over the past year, reserves have shown steady growth despite occasional pressures. After reaching $40.90bn in early January 2025, reserves dipped to $39.72bn by the end of the month, then further declined to around $38.3bn in February and March. By April, they stabilised at $37.93bn before gradually climbing back to $38.5bn by June.
A significant jump occurred in July, with reserves rising by over $2bn to close at $39.36bn, before reaching $39.99bn in early August—a full-year increase of $3.6bn.
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., expressed optimism about the reserves’ outlook, citing strong crude oil prices and sustained foreign investor interest. “The positive sentiment about Nigeria, coupled with relatively high asset yields, will continue to drive foreign portfolio inflows,” he said.
Meanwhile, economic analyst Bismarck Rewane warned of growing public unease over the unintended consequences of government reforms, including subsidy removal and foreign exchange liberalisation.
Speaking at the Lagos Business School’s monthly breakfast session, Rewane noted that while reforms were necessary, “reform fatigue” was setting in, with citizens feeling the strain of rising costs and economic instability.
Nigeria’s inflation, though declining since March, remains high at 22.2%, while the naira continues to face pressure despite recent stability in the foreign exchange market.
Analysts at Cordros Research predict the currency will remain stable in the near term but cautioned that global pressures could trigger gradual depreciation.
The country’s economic growth, however, shows signs of resilience, with expectations that second-quarter GDP will exceed the 3.36% recorded in the first quarter. Key drivers include increased activity in the oil refining sector, bolstered by the Dangote Refinery’s operations.
As Nigeria navigates the challenges of economic restructuring, the steady rise in foreign reserves offers a measure of stability, though analysts warn that sustained progress will depend on balancing reforms with public welfare.
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