Nigeria’s external financial position recorded a major boost in 2025, as Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), announced that the country’s net foreign exchange reserves climbed to $34.80 billion by year-end.
The new figure highlights a sharp improvement in Nigeria’s external buffers and signals growing confidence in ongoing monetary and foreign exchange reforms.
According to official data, net foreign exchange reserves rose by $11.69 billion, representing a 50.58 percent increase from the $23.11 billion recorded in 2024.
Even more striking is the comparison with 2023, when net reserves stood at just $3.99 billion. The 2025 figure reflects an increase of $30.81 billion, or 772.18 percent, underscoring the scale of recovery in Nigeria’s external financial position.
Net international reserves measure a country’s reserve assets after adjusting for short-term external liabilities such as foreign exchange swaps and forward contracts.
Financial analysts consider this metric a more accurate indicator of a nation’s ability to meet immediate external obligations compared to gross reserves alone.
Cardoso noted that Nigeria’s 2025 net reserve position exceeded the country’s total gross external reserves of $33.22 billion recorded in 2023, describing the milestone as evidence of sustained strengthening in external finances.
Further breakdown of the data shows:
- Net Reserves: Increased from $23.11 billion (2024) to $34.80 billion (2025)
- Gross External Reserves: Rose from $40.19 billion to $45.71 billion in the same period
- Total Gross Reserve Growth: $5.52 billion increase year-on-year
The steady rise in both net and gross reserves signals improved liquidity and enhanced capacity to defend the naira against volatility.
The CBN governor attributed the strong performance to several factors, including:
- Strengthened external sector fundamentals
- Increased transparency in foreign exchange management
- Ongoing monetary policy reforms
- Measures aimed at restoring investor confidence
- Stabilisation of the foreign exchange market
Economic observers say the reforms have contributed to improved capital inflows and better management of Nigeria’s foreign currency obligations.
Cardoso reaffirmed the apex bank’s commitment to maintaining adequate reserve buffers to safeguard macroeconomic stability and ensure smooth operations in the foreign exchange market.
In February 2026, the CBN governor disclosed that Nigeria’s gross external reserves had risen further, suggesting continued upward momentum in the country’s external financial strength as economic reforms progress.
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