Nigeria’s FX buffers strengthen as net reserves climb to $34.8bn in 2025

Nigeria ended 2025 with a much stronger foreign exchange position, as net foreign reserves rose to $34.80 billion, marking one of the country’s most significant improvements in external liquidity in recent years.

The Central Bank of Nigeria (CBN) confirmed that net reserves increased from $23.11 billion at the end of 2024 to $34.80 billion by December 2025, representing a $11.69 billion gain within one year. This progress builds on a deeper recovery from $3.99 billion recorded at the end of 2023, highlighting how Nigeria has steadily rebuilt its usable foreign exchange buffers over a two-year period.

By the close of 2025, Nigeria’s net reserve position had grown beyond the country’s total gross external reserves of $33.22 billion at the end of 2023, showing not just growth in size, but a clear improvement in quality. Net reserves reflect funds that are liquid and available, as they exclude short-term liabilities and other obligations that form part of gross reserves.

Gross external reserves also strengthened during the same period. Data released by the CBN shows that reserves increased from $40.19 billion at the end of 2024 to $45.71 billion by December 2025, an improvement of $5.52 billion. The positive trend continued into 2026, with gross reserves rising further to $50.45 billion as of February 16, 2026, as disclosed by CBN Governor Olayemi Cardoso during the post-Monetary Policy Committee press briefing held on February 24, 2026.

Governor Cardoso attributed the improvement in both net and gross reserves to stronger external sector fundamentals supported by sustained policy reforms. He explained that improved transparency and credibility in foreign exchange management helped restore investor confidence and attract stronger foreign exchange inflows into the country. He also noted that enhanced reserve management practices are focused on protecting capital, maintaining liquidity, and supporting long-term sustainability.

According to the CBN, the stronger reserve position improves Nigeria’s capacity to meet external obligations, support exchange rate stability, and reinforce overall macroeconomic resilience. The end-of-2025 outcome, the Bank said, confirms that ongoing reforms and external sector adjustments are delivering results, while reaffirming Nigeria’s commitment to maintaining adequate foreign exchange buffers and orderly market operations.