Nigeria’s external reserves have climbed to an eight-month high of $40.15 billion, according to Central Bank of Nigeria (CBN) data, marking a 1.5% increase from $39.54 billion on August 1, 2025. The last time reserves were at this level was on January 20, 2025.
The naira has maintained relative stability across official and parallel markets:
•Official market (NFEM): ₦1,533.56/$ as of Friday, marginally weaker by 1.61% from Monday’s ₦1,531.95, but still up 0.5% year-to-date.
•Parallel market: Steady at ₦1,560/$ through the week, appreciating 6.4% year-to-date from ₦1,660 at the start of 2025.
The reserve build-up of $2.2 billion in July represents the largest monthly gain since July 2024. Analysts attribute this to:
•Increased offshore investor inflows
•Reduced FX demand due to lower import activity
•Improved macroeconomic stability and investor confidence
Reserves now cover 11.9 months of imports (8.2 months including services), providing the CBN with greater flexibility to sustain FX market interventions and keep the naira stable.
Market outlook suggests continued reserve growth, supported by persistent foreign inflows and anticipated external borrowings, with the naira projected to close 2025 within the ₦1,490–₦1,520/$ range.
These gains reflect President Bola Ahmed Tinubu’s Renewed Hope Agenda in action, reinforcing currency stability, investor confidence, and macroeconomic resilience.
