The Central Bank of Nigeria has reported that the nation’s external reserves have climbed to $41.00 billion as of August 19, 2025, marking the highest level recorded in forty-four months.
This significant milestone represents the strongest reserve position since December 2021 and demonstrates a pattern of steady external accretion in recent weeks. The current growth comes after months of gradual depletion and market volatility, primarily driven by substantial external debt repayment pressures.
The reserves have demonstrated a remarkable recovery throughout August, increasing by approximately $1.46 billion since the beginning of the month. This represents a growth of 3.69 percent in less than three weeks.
The buildup gained momentum in early August when reserves surpassed the $40 billion threshold on August 7, after closing July below $39.4 billion. The pace of accretion accelerated noticeably, with reserves reaching $40.5 billion by August 12 and crossing the $41 billion mark just one week later. On average, the country’s reserves have grown by roughly $81 million per day throughout August, reflecting substantially improved foreign exchange inflows compared to outflows.
This substantial reserve accumulation has strengthened the Central Bank’s capacity to stabilise the national currency in official markets, manage liquidity conditions, and counter speculative pressures in the foreign exchange market.
The reserves’ strong performance places Nigeria in its most favourable external position since late 2021, providing improved sovereign credit confidence and demonstrating the nation’s enhanced ability to meet international obligations.
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cc: West Post NG
