Nigeria’s external reserves post their first sustained rise in 2025, signaling a potential turning point for FX market stability.
Nigeria’s foreign reserves have recorded their first consistent rebound of 2025, rising by $364 million between April 30 and May 14, according to new data from the Central Bank of Nigeria (CBN).
Reserves climbed from $37.934 billion to $38.298 billion—up 0.96% in two weeks—marking the first uninterrupted rise since January 6, when reserves peaked at $40.92 billion before entering a months-long decline driven by external debt pressures, weak oil output, and forex demand.
This turnaround is seen as a reflection of renewed investor confidence and strategic FX reforms under CBN Governor Olayemi Cardoso. Rather than defending the naira through costly interventions, the CBN has taken a hands-off approach, letting market forces guide the rate while conserving reserves. Tighter FX monitoring and clampdowns on misuse have also reduced speculative demand.
Cardoso described the uptick as the result of “deliberate policy choices” aimed at restoring stability and attracting capital. With improved oil output and stronger non-oil exports expected in Q2, the CBN anticipates the reserve build-up will continue—offering the naira breathing room and boosting Nigeria’s credit standing.
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