Nigeria’s FX Reserves Hit $42 Billion, Marking Six-Year High

Nigeria’s external reserves have reached their highest level in six years, surpassing the $42 billion threshold for the first time since September 2019. The Central Bank of Nigeria reported that as of September 19, 2025, reserves stood at $42.03 billion, signaling a notable recovery from earlier lows this year and renewing optimism about the country’s foreign exchange stability.

This latest figure represents a new 72-month peak and highlights a steady improvement in Nigeria’s reserves since July, when the stock fell to its lowest point in 2025. The September 19 figure also marks a $40 million increase from the previous day’s $41.99 billion and shows a substantial gain from $41.42 billion at the start of the month.

The last time reserves were higher was on September 26, 2019, when they reached $42.05 billion. Since then, the reserves have faced sustained pressure due to declining oil prices, capital outflows, rising import demand, and interventions in the foreign exchange market.

Unlike previous temporary spikes, the current rally has demonstrated remarkable consistency, with reserves growing in nearly every trading session in September, including 13 consecutive daily increases across 14 reporting days. Between September 1 and 19, reserves rose by $610.8 million, or 1.47 percent, averaging about $47 million in daily accretion.

The second half of September was particularly strong. From September 15 to 19, reserves expanded by nearly $583 million in just four business days, reflecting stronger foreign exchange inflows and slower outflows. Compared to August 29, when reserves were $41.31 billion, the current stock is higher by $727.3 million, representing a 1.76 percent increase. On a year-to-date basis, reserves have grown by $1.15 billion, or 2.83 percent, from $40.88 billion at the close of 2024.

The recent recovery represents a sharp turnaround from the year’s low of $37.18 billion on July 3, which had raised concerns about Nigeria’s ability to defend the naira and meet external obligations. Since then, reserves have increased by $4.85 billion, a recovery of roughly 13.05 percent.

The resurgence of reserves above $42 billion strengthens the Central Bank’s capacity to stabilize the foreign exchange market and enhances Nigeria’s import cover, a key indicator monitored by investors, lenders, and international ratings agencies. Economists suggest the six-year high could attract fresh portfolio inflows into local assets if policy consistency and competitive yields are maintained.

Market analysts describe the September rally as a significant milestone that could bolster the naira in both official and parallel markets. Experts project that reserves could rise to around $45 billion by the end of 2025, supported by steady offshore inflows, improved oil earnings, and planned external borrowings. However, they caution that global financial volatility, reversals in portfolio inflows, or weaker oil production could challenge the sustainability of the current momentum.

The durability of the rally depends on continued foreign exchange inflows from crude oil exports, non-oil revenues, diaspora remittances, and portfolio investments. Sustained gains could not only surpass late-2019 levels but also restore reserves to mid-2010s peaks above $45 billion.

From a low of $37.18 billion in July to $42.03 billion in September, Nigeria’s external reserves have demonstrated resilience against earlier pressures, signaling a positive shift and offering policymakers a window to reinforce confidence in the economy.