Nigeria Foreign Exchange Reserves Rise 9.4% to $40.29bn in August 2025 — Strongest Since January
Nigeria’s foreign exchange reserves have climbed to their highest level since January, reaching $40.29 billion as of August 8, 2025, according to fresh data from the Central Bank of Nigeria (CBN). This marks a 9.4% increase, or $3.45 billion gain, compared to $36.84 billion recorded a year earlier, and reflects growing optimism around the nation’s economic outlook.
Analysts attribute the sustained growth to stronger foreign exchange inflows, driven by elevated crude oil prices, rising remittances from the Nigerian diaspora, and renewed appetite from foreign portfolio investors (FPIs). “Crude oil prices have stayed above $70, and positive sentiment about Nigeria, coupled with high asset yields, will continue to drive FPIs,” said Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co.
Market watchers, including Cordros Research, note that the stability of the naira will hinge on improving FX liquidity from both local and foreign sources. However, they warn of potential headwinds if global oil prices fall or geopolitical tensions rise. Afrinvest Asset Management added that consistent inflows from oil exports, remittances, and portfolio investments — alongside reduced speculative demand — will help keep the currency range-bound in the short term.
In its H2 2025 outlook, Comercio Partners projected a significant improvement in Nigeria’s Balance of Payments (BoP), aided by a more competitive naira and lower petroleum import dependence. “Savings from reduced oil importation and export competitiveness are boosting reserves,” the firm stated.
Nigeria’s robust reserve position also strengthens its ability to meet external debt obligations. With a combined $1.813 billion in coupon payments and Eurobond maturities due in H2 2025, Comercio estimates current reserves can cover the debt service burden about 20 times over. The firm forecasts that reserves could hit $43 billion by year-end, providing a substantial buffer for economic stability.
Source: This day