Nigeria’s foreign reserves have been on the rise, and it is now at its highest level in three months Latest data from the CBN showed that Nigeria’s FX reserves in May alone have increased by over $400 million The increase in the nation’s reserves is significant as it gives CBN the firepower to help the naira in the foreign exchange markets
The Central Bank of Nigeria (CBN) has reported that Nigeria’s external reserves climbed to $38.34 billion as of May 15, 2025, indicating signs of recovery after months of decline. Although still below the $39.72 billion recorded at the end of January, the reserves rose by $401.78 million in just 15 days in May, compared to $37.93 billion at the end of April 2025.
Analysis of CBN data showed the last time the reserves were near current levels was in late February 2025. Here is a monthly balance of Nigeria’s reserves in 2025 January 2025: $39.72 billion February 2025: $38.42 billion March 2025: $38.31 billion April 2025: $37.93 billion May 2025 (as of 15th): $38.34 billion CBN speaks on rise in reserves In its latest bulletin, CBN said the increase in reserves reflects a combination of strategic measures undertaken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities notably swaps and forward obligations.
The strengthening was also spurred by policy actions to rebuild confidence in the FX market and increase reserve buffers, along with recent improved foreign exchange inflows, particularly from non-oil sources. The result is a stronger and more transparent reserves position that better equips Nigeria to withstand external shocks. The expansion occurred even as the CBN continues to reduce short-term liabilities, thereby improving the overall quality of the reserve position.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, commented: “This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability. “We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms.”
Reserves have continued to strengthen in 2025. While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact, and reserves are expected to continue improving over the second quarter of this year. Going forward, the CBN anticipates a steady uptick in reserves, underpinned by improved oil production levels, and a more supportive export growth environment expected to boost non-oil FX earnings and diversify external inflows. The CBN said it remains committed to prudent reserve management, transparent reporting, and macroeconomic policies that support a stable exchange rate, attract investment, and build long-term resilience.
