Wednesday, March, 4 2026 - Nigeria’s external financial buffers strengthened significantly in 2025 as Olayemi Cardoso, governor of Central Bank of Nigeria (CBN), disclosed that the country’s net foreign exchange reserves reached $34.80 billion by the end of the year.
The figure represents a major increase compared with
previous years, rising by $11.69 billion or 50.58 percent from $23.11 billion
recorded in 2024. It also reflects a remarkable improvement of about $30.81
billion, or 772.18 percent, when compared with the $3.99 billion recorded in
2023.
Net international reserves represent reserve assets after
adjusting for short-term external liabilities such as foreign exchange swaps
and forward contracts. Analysts regard the metric as a more accurate indicator
of a country’s ability to meet immediate external obligations.
The CBN governor stated that the 2025 reserve position
surpassed Nigeria’s total gross external reserves of $33.22 billion recorded in
2023, describing it as evidence of sustained improvement in the country’s
external financial strength.
Further data showed that net reserves grew from $23.11
billion in 2024 to $34.80 billion in 2025, while gross external reserves also
expanded from $40.19 billion to $45.71 billion during the same period, marking
an increase of $5.52 billion.
Cardoso attributed the positive performance to stronger
external sector fundamentals, greater transparency in foreign exchange
management, and ongoing monetary policy reforms aimed at improving investor
confidence and stabilising the exchange rate market.
He added that the central bank remains committed to
maintaining adequate reserve buffers to support macroeconomic stability and
ensure smooth foreign exchange market operations.
In February 2026, Cardoso also told journalists that
Nigeria’s gross external reserves had risen further, indicating continued
growth in the country’s external financial position as economic reforms
progress.
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