CBN Announces $5.52bn Boost in External Reserves as Net Assets Climb to $34.8bn
The Central Bank of Nigeria (CBN) has revealed a striking improvement in the country’s external liquidity position, with foreign exchange reserves and net foreign assets recording substantial growth by the end of 2025
According to a statement released by the apex bank, gross external reserves expanded by $5.52 billion in the 2025 financial year, while net foreign exchange reserves soared to $34.80 billion, marking a significant milestone in Nigeria’s external buffers and reflecting the impact of ongoing policy reforms.
Reserve Growth Reflects Policy Gains
CBN Governor Olayemi Cardoso explained that the upward trajectory in both gross and net reserves underscores the success of recent reforms in foreign exchange management, increased transparency, and improved investor confidence in Nigeria’s economic fundamentals.
Net reserves which subtract short-term foreign exchange liabilities such as swaps and forward contracts from gross holdings. climbed sharply from $3.99 billion at the end of 2023 to $34.80 billion by December 2025, a roughly 772 per cent increase over two years.
This growth also means that Nigeria’s net foreign reserve position at the close of 2025 exceeded the entire gross reserves recorded in 2023, a testament to the improved quality of the country’s external buffers and fiscal resilience.
What the Numbers Reveal
- Gross Reserves: Increased by about $5.52bn in 2025, contributing to levels not seen in several years.
- Net Reserves: Jumped from roughly $23.11bn at end-2024 to $34.80bn at end-2025, signaling a 50.6 per cent year-on-year increase.
- Comparative Perspective: The $34.80bn net position now surpasses Nigeria’s gross external reserves as recently as 2023, highlighting a deeper improvement in foreign exchange strength.
Financial analysts consider net foreign assets a more reliable measure of a country’s ability to meet external obligations, as it accounts for reserve liabilities. The significant rise in net reserves points to a stronger and more sustainable external liquidity profile for Nigeria.
Drivers of the Reserve Accrual
Economists and policy observers say several factors have contributed to the healthier reserve outlook:
- FX market reforms: The CBN’s recalibration of foreign exchange policies including the unification of FX windows and improved transparency has attracted stronger foreign inflows and reduced distortions in currency markets.
- Capital inflows: Nigeria recorded robust foreign capital flows, partly due to improved investor confidence, structural economic reforms, and a more disciplined monetary policy stance.
- Stronger external account fundamentals: Trade balance improvements and remittances from the diaspora continued to support reserve accumulation, adding much-needed dollar liquidity to the system.
Economic Implication
The sustained build-up of reserves has broader implications for the Nigerian economy. Higher reserve buffers provide a cushion against external shocks, help stabilize the naira, and support the central bank’s ability to manage liquidity without over-reliance on market interventions.
Recent data shows that gross foreign exchange reserves climbed to near $50.45 billion in February 2026, the highest in more than a decade, further boosting market confidence and signaling a more resilient external position for Nigeria.
Conclusion: With global economic uncertainties persisting such as geopolitical tensions affecting capital flows and commodity prices the CBN’s strengthened reserve position offers policymakers greater flexibility. A robust reserve profile not only enhances Nigeria’s capacity to absorb external shocks but also underpins efforts to achieve monetary stability and sustainable economic growth.
As financial markets continue to monitor reserve trends, the latest figures from the CBN highlight a remarkable turnaround for Nigeria’s external sector and a strong foundation for future policy action.
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