Nigeria’s Foreign Reserves Hit $41 Billion, Highest in Nearly Four Years

Nigeria’s foreign exchange reserves climbed to $41.00 billion on August 19, the highest level recorded in 44 months, according to new figures released by the Central Bank of Nigeria.

The milestone marks the strongest reserve position since December 2021 and reflects a period of sustained external inflows that have helped bolster the country’s financial buffers.

The recent surge comes after a stretch of depletion earlier in the year, when reserves slipped as low as $37.28 billion in July, weighed down by external debt obligations and volatile oil earnings. Since then, the sharp rebound has added more than $3 billion, representing growth of around 8 percent in just one month.

In August alone, reserves grew by $1.46 billion, climbing from $39.54 billion at the start of the month to $41.00 billion by mid-August. This translates to an average daily increase of about $81 million, supported by improved foreign exchange inflows from crude oil receipts, non-oil exports, and portfolio investments.

On a year-to-date basis, however, reserves have risen only modestly, opening 2025 at $40.88 billion and gaining about $124 million, or 0.30 percent, by August. Most of the gains have been concentrated in the past five weeks.

Analysts note that a stronger reserve position provides greater confidence in Nigeria’s ability to manage liquidity pressures, defend the naira, and meet external debt obligations. The Central Bank has also attributed the upward trend to increased capital inflows, higher oil production, and reduced import demand.

While the improvement is significant, sustaining the growth will depend on global oil market conditions, non-oil export performance, and the government’s debt servicing commitments. For now, however, the $41 billion threshold places Nigeria in its strongest external financial position since late 2021.