Nigeria’s external reserves have reached their highest level in more than six years, crossing the $45 billion mark—a development economists say could strengthen confidence in the country’s foreign exchange market and boost overall macroeconomic stability. Fresh figures released by the Central Bank of Nigeria (CBN) show that the reserves have risen to $45.04 billion, a level last recorded on July 23, 2019.

Nigeria’s Forex Reserves Hit Six-Year High, Crossing $45 Billion Mark

The latest data caps months of steady accumulation, marking one of the most significant reserve expansions Nigeria has seen since 2018. According to the CBN, the country has added nearly $5 billion to its reserves in just a few months, even as several emerging economies continue to battle severe currency volatility and dwindling reserve buffers.

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The rapid buildup comes after earlier reports confirmed that Nigeria’s reserves hit $42.03 billion on September 19, 2025—the highest in 72 months at the time. The additional $3 billion gained since then underscores improved inflows from oil earnings, capital importation, and fiscal support measures aimed at stabilizing the economy.

Drivers Behind the Surge

Analysts point to several key factors behind the impressive reserve growth. First, global oil prices have remained relatively stable, providing Nigeria—Africa’s largest oil exporter—with stronger revenue inflows. Crude oil production has also seen gradual recovery following earlier disruptions caused by pipeline vandalism, oil theft, and operational setbacks in the Niger Delta.

Second, the CBN’s renewed efforts to attract foreign investment appear to be yielding results. Policy reforms encouraging transparency in the FX market, settlement of longstanding FX backlogs, and ongoing discussions with international financial institutions have helped restore investor confidence. The unification of FX windows and increased liberalization have also incentivized new inflows, especially from portfolio investors seeking higher yields in Nigeria’s financial markets.

Third, Nigeria has benefited from enhanced non-oil inflows, including diaspora remittances and improved performance in sectors such as telecommunications, fintech, and agriculture. The surge in remittance activities—fueled by digitized payment channels and increased global migration—has contributed significantly to the reserve buffer.

Impact on the Nigerian Economy

The jump in Nigeria’s reserves is expected to have a ripple effect across the economy. A stronger reserve position increases the CBN’s ability to defend the naira, mitigate external shocks, and manage short-term volatility in the FX market. It also strengthens the country’s creditworthiness and could positively influence the perception of international rating agencies, which have closely monitored Nigeria’s external position in recent years.

With more liquidity available, the CBN is better positioned to supply FX to key sectors such as manufacturing, aviation, pharmaceuticals, and petroleum importation—areas that have often suffered from acute dollar shortages. Improved supply is likely to reduce pressure on the parallel market, narrowing the gap between official and unofficial exchange rates.

Moreover, the reserve buildup could stabilize inflation over the medium term. A more predictable FX market reduces imported inflationary pressures, particularly on essential goods like food and fuel. While inflation remains a major challenge, economists believe the reserves milestone is a step toward restoring macroeconomic balance.

Challenges Still Ahead

Despite the positive outlook, experts warn that Nigeria must avoid complacency. The sustainability of the reserve increase largely depends on maintaining steady oil production, improving exports, and reducing excessive import dependence. Factors such as global price fluctuations, geopolitical tensions, and domestic security issues in oil-producing regions continue to pose risks.

Additionally, long-term stability requires deep structural reforms. Nigeria’s economy is still heavily reliant on oil revenues, making it vulnerable to external shocks. Diversification efforts in mining, manufacturing, and technology need greater policy support and investment to reduce pressure on the FX market.

Some analysts also emphasize the need for prudent fiscal discipline. Rising debt levels, costly petroleum subsidies, and revenue leakages could undermine economic gains if not properly managed. Strengthening public finance systems, enhancing transparency, and expanding the tax base remain essential.

A Positive Signal for Investors

Regardless of the challenges, the latest reserve figures send a strong positive signal to both local and foreign investors. The rise to $45.04 billion reflects a more resilient economy and a monetary authority committed to restoring stability. Financial experts say the achievement will likely attract more portfolio and foreign direct investments, particularly if supported by consistent policies and improved ease of doing business.

As Nigeria continues efforts to boost productivity and stabilize the naira, the new reserve milestone marks a symbolic and economic turning point. With the right reforms, the country could consolidate its gains and pave the way for stronger growth in 2026 and beyond.