FX reforms pay off as Nigeria’s net reserves hit $34.80bn

From Adanna Nnamani, Abuja

Nigeria’s external financial buffers strengthened significantly in 2025, with improved reserve management and policy reforms boosting investor confidence, according to the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso.

Cardoso disclosed that Nigeria’s gross external reserves stood at $50.45 billion as of February 16, 2026, while net foreign exchange reserves rose sharply to $34.80 billion by the end of December 2025. He made the disclosure during a post-Monetary Policy Committee (MPC) press briefing on Tuesday, February 24, 2026, and reiterated the progress over the weekend.

He attributed the improvement to “increased transparency and credibility in foreign exchange management,” noting that the reforms had helped attract stronger FX inflows while strengthening liquidity planning and long-term capital preservation strategies. According to him, the gains reflected a broader strengthening of Nigeria’s external sector fundamentals over the past three years.

“The improvement represents a substantial strengthening in both the level and quality of Nigeria’s external buffers,” he said, adding that the country’s net reserves rose dramatically from $3.99 billion at the end of 2023 to $34.80 billion by 2025. He noted that the 2025 net reserve position alone exceeded the total gross reserves recorded two years earlier, which stood at $33.22 billion.

Cardoso further explained that reserve growth remained consistent across the period, with net reserves climbing from $23.11 billion in 2024 to $34.80 billion in 2025.

Gross external reserves also improved, rising from $40.19 billion in 2024 to $45.71 billion in 2025, representing an increase of $5.52 billion.

He said the expansion underscored Nigeria’s improved ability to meet external obligations, support exchange rate stability, and reinforce macroeconomic resilience amid global economic uncertainties.

Cardoso described the 2025 reserve performance as “strong validation” of the CBN’s ongoing monetary and foreign exchange reforms. He reaffirmed the bank’s commitment to sustaining adequate reserve buffers, promoting orderly foreign exchange market operations, and maintaining confidence in Nigeria’s external financial position in line with its statutory mandate.

The CBN chief said the focus remains on sustaining policy credibility, attracting long-term investments, and preserving macroeconomic stability for future growth.