Nigeria’s External Reserves Surge 12% to $41.66 Billion Amid Naira Gains and Rising Remittances
Nigeria’s external reserves have recorded a strong rebound, rising by 12 per cent in just three months to hit $41.663 billion, the highest level since November 2021. According to the Central Bank of Nigeria (CBN), the reserves gained $4.467 billion as of September 11, 2025, reflecting renewed investor confidence, increased diaspora remittances and stronger non-oil inflows into the economy.
The impressive build-up in foreign reserves comes as the naira continues to appreciate at both the official and parallel markets. At the Nigeria Autonomous Foreign Exchange Market (NAFEM), traders sold the dollar at N1,501.49 — the strongest level since March 2025 — compared to N1,531.57 at the end of August. In the parallel market, the naira also strengthened to an average of N1,510 to the dollar, buoyed by improved liquidity and reduced speculative activity.
Analysts at Cowry Assets Management say the steady growth in external reserves is critical for Nigeria’s financial stability. “The incremental build-up provides a vital buffer against external shocks such as oil price volatility and currency pressures. It also strengthens the CBN’s ability to intervene in the forex market when necessary, thereby helping to stabilise the naira,” they noted.
CBN Governor Olayemi Cardoso revealed that inflows from Nigerians in the diaspora have tripled in recent months, climbing from $250 million earlier in the year to $600 million monthly. He projected that by next year, diaspora remittances could double again to reach $1 billion per month, riding on the successes of the apex bank’s policy reforms. “As far as we are concerned, we have done everything to enable that to happen,” Cardoso said.
Market analysts expect the naira to remain stable in the near term, underpinned by resilient forex liquidity, improved domestic inflows and anticipated capital inflows from foreign investors. Cordros Research notes that a potential U.S. Fed rate cut and easing global yields could further boost appetite for naira-denominated assets, while stronger non-oil exports and reduced incentives for speculation may sustain the positive momentum in Nigeria’s foreign exchange market.
source: leadership