Figures published by the Central Bank of Nigeria (CBN) reveal that the country’s foreign exchange reserves hit $41.00 billion as of August 19, 2025, the highest level in 44 months.
After months of depletion and volatility occasioned by external debt repayment, this rebound is the strongest since December 3, 2021.
The latest development signposts improved foreign exchange inflows and strengthens the CBN’s capacity to stabilize the naira, manage liquidity, and defend it against speculative pressure.
The increase has been exceptional in August, with reserves adding $1.46 billion month-to-date, rising from $39.54 billion on August 1 to $41.00 billion on August 19.
This figure represents a 3.69 percent growth in less than three weeks, averaging about $81 million per day.
Reserves crossed the $40 billion threshold on August 7, advanced to $40.5 billion by August 12, and reached the $41 billion milestone just a week later.
Ironically, year-to-date performance, however, shows only modest gains, despite the increase.
The country’s reserves stood at $40.88 billion at the end of December 2024, meaning the current level reflects an increase of about $124 million, or 0.30 percent, since the beginning of the year.
The first half of the year had reserves floating between $37 and $39 billion; however, the last five to six weeks have witnessed remarkable growth.
Before now, reserves had dipped as low as $37.28 billion in early July before the sharp turnaround that has since added more than $3 billion, equivalent to an 8 percent rise within a month.
The latest rebound places Nigeria in its strongest external reserve position since late 2021, reversing the prolonged drawdowns that weighed heavily on reserves through 2022 and 2023.
