Follow Us on Google
By Uche usim
Nigeria’s external reserves have maintained their upward trajectory, rising by $540.28 million in the last two weeks of October to reach $43.17 billion as of October 30, 2025, according to the latest figures from the Central Bank of Nigeria (CBN).
The performance represents a 1.3 percent increase over two weeks and a 1.8 percent rise month-on-month, from $42.40 billion at the beginning of October. CBN data show that the gross reserves recorded consistent daily increases throughout the review period, with the highest level of $43.17 billion attained on October 30, compared to $42.63 billion on October 13. The steady accumulation of reserves underscores improved foreign exchange liquidity and a stronger external balance position for Africa’s largest economy.
The liquid component of the reserves also rose significantly from $41.98 billion on October 13 to $42.55 billion by October 30, an increase of $579.62 million. This growth signals better availability of foreign exchange for trade settlements and monetary operations. In contrast, blocked reserves, the portion tied up in commitments or illiquid instruments, declined slightly from $656.45 million to $618.63 million over the same period. The share of blocked funds in total reserves consequently fell from 1.54 percent to 1.43 percent, indicating greater efficiency in the management of external assets and an improved reserve structure.
The trend of daily incremental growth suggests steady inflows, likely driven by oil exports, remittances, and portfolio capital. Between October 20 and 30 alone, reserves gained nearly $380.7 million, pointing to stronger dollar inflows relative to market outflows. Analysts believe that the CBN’s tightening stance and its renewed transparency in the forex market are boosting foreign exchange retention and investor confidence. The reduction in blocked reserves, they add, shows that a larger share of Nigeria’s external assets is now accessible and deployable for market operations.
Analysts at United Capital Research expressed optimism that Nigeria’s external reserves will sustain their positive momentum in the final quarter of 2025, supported by robust oil export receipts, strong diaspora remittances, and a favourable trade balance. “As of September 30, 2025, Nigeria’s external reserves had risen to $42.53 billion, the highest level in more than three and a half years, reflecting renewed foreign capital inflows and improving macroeconomic fundamentals,” United Capital noted. The firm further observed that “the consistent buildup in reserves underscores Nigeria’s improved external liquidity and resilience against global shocks.”
According to its analysis, the reserves now provide over eight months of import cover, offering a strong buffer that enhances monetary stability and investor confidence. United Capital also explained that the CBN’s reported figure represents a 30-day moving average, which means actual reserves could be slightly higher than the official number, a method that helps smooth out short-term fluctuations and reveal the underlying trend.
The research firm stated, “Sustained inflows from oil, remittances, and portfolio investments, combined with disciplined foreign exchange management, place Nigeria in a better position to consolidate its external balance and strengthen macroeconomic stability in the months ahead.”
