Nigeria’s Net FX Reserves Soar 772% to $34.8 Billion, Signaling Stronger Economic Stability
Nigeria’s net foreign exchange reserves soared to $34.80 billion at the end of 2025, marking a remarkable 772 per cent increase from $3.99 billion recorded at the close of 2023. The Governor of the Central Bank of Nigeria, Olayemi Cardoso, described the surge as a clear sign of renewed strength in the country’s external buffers and a reflection of sustained monetary and foreign exchange reforms.
In a statement released by the apex bank, Cardoso explained that both gross and net reserves recorded significant improvements, underscoring what he called “stronger external sector fundamentals.” While gross reserves represent the total stock of foreign assets—including currencies and gold—net reserves provide a clearer measure of liquidity, as they exclude short-term liabilities and obligations. This distinction, analysts say, offers a more realistic view of the funds readily available to defend the naira and meet external commitments.
Earlier disclosures at the Monetary Policy Committee briefing revealed that Nigeria’s gross external reserves stood at $50.45 billion as of February 16, 2026. Providing further clarity, Cardoso noted that net reserves rose sharply from $23.11 billion at the end of 2024 to $34.80 billion by December 2025, while gross reserves climbed to $45.71 billion, up from $40.19 billion over the same period. Notably, the 2025 net reserve figure alone exceeded the total gross reserves of $33.22 billion recorded at the end of 2023—a milestone the governor described as a “fundamental improvement in reserve quality.”
Cardoso attributed the reserve build-up to improved transparency in foreign exchange management, policy consistency, and growing investor confidence. He highlighted favourable trade conditions, a healthy current account surplus, stronger non-oil exports, and rising diaspora remittances as key drivers. “Underpinning all this, quite frankly, is market confidence,” he said, stressing that consistent engagement with international investors has helped stabilise Nigeria’s external position.
For many Nigerians watching the country’s economic recovery closely, the figures signal more than just statistical growth. They point to increased capacity to stabilise the exchange rate, meet external obligations, and cushion the economy against global shocks. Reaffirming the bank’s commitment to macroeconomic stability, the CBN governor pledged continued support for orderly foreign exchange market operations and the maintenance of adequate reserve buffers to safeguard long-term sustainability.
source: punch