Latest data from the Central Bank of Nigeria (CBN) shows reserves at $42.03 billion as of Monday, slightly higher than $41.99 billion recorded the previous day and well above the $41.42 billion balance at the start of September. The last time reserves were higher was on September 26, 2019, when they reached $42.05 billion.
The milestone extends a rally that began in July and has accelerated through September, boosting investor confidence, strengthening Nigeria’s import cover, and reinforcing the CBN’s policy credibility.
Strong September Performance
Reserves have posted steady growth throughout September, recording 13 consecutive daily increases across 14 reporting sessions. Between September 1 and September 19, the stock grew by $610.8 million (1.47%), averaging about $47 million per day.
The second half of the month has been particularly strong. From September 15 to 19 alone, reserves surged by nearly $583 million, reflecting improved foreign exchange inflows and restrained outflows. Compared with August 29 levels, reserves are now up by $727.3 million (1.76%).
Year-to-Date Recovery
So far in 2025, reserves have grown by $1.15 billion (2.83%), rising from $40.88 billion at the end of December 2024. This rebound comes after a steep decline earlier in the year, when reserves dropped to $37.18 billion on July 3 — the lowest point of 2025. Since then, the balance has recovered by $4.85 billion (13.05%), reversing earlier losses.
Implications for Economy
The return above $42 billion strengthens the CBN’s capacity to stabilize the foreign exchange market, meet external obligations, and attract fresh portfolio inflows. Analysts note that the six-year high sends a positive signal to investors, lenders, and ratings agencies.
However, sustaining the momentum will depend on consistent FX supply from oil exports, non-oil earnings, remittances, and foreign portfolio investments. Risks such as weaker oil production or falling global crude prices could stall gains, while stronger output and transparent FX policies could push reserves even higher.
With this milestone, September has flipped Nigeria’s 2025 reserves story from fragility to recovery. The challenge now is whether the rally can hold through the fourth quarter to ensure lasting currency stability and external resilience.
