Naira Gets Massive Boost as Nigeria’s Net External Reserves Hit Four-Year High at $34.80bn
- Nigeria's net external reserves hit $34.80 billion, marking a record high since 2022
- Central Bank credits reforms for investor confidence and improved foreign exchange management
- Experts predict a stable exchange rate and lower inflation due to stronger reserve foundations
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s net external reserves have risen sharply to $34.80 billion at the end of 2025, marking the highest level recorded in three years and signalling renewed strength for the naira.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed the figures in a statement issued on Monday, March 2, 2026. According to him, the increase represents a dramatic 772.18 per cent surge from $3.99 billion recorded in 2023.
Source: Getty Images
Cardoso described the development as a fundamental improvement in the quality of Nigeria’s external buffers, underscoring stronger financial stability and improved foreign exchange management.
2025 net reserves outperform 2023 gross figures
According to a BusinessDay report, one of the most striking highlights of the latest data is that the net reserve position for 2025 alone exceeded the country’s total gross reserves at the end of 2023, which stood at $33.22 billion.
Providing a further breakdown, Cardoso revealed that net reserves climbed from $23.11 billion at the end of 2024 to $34.80 billion by December 2025.
During the same period, gross external reserves increased from $40.19 billion to $45.71 billion, reflecting a $5.52 billion rise.
He had earlier stated at the Monetary Policy Committee briefing on February 24, 2026, that gross external reserves stood at $50.45 billion as of February 16, 2026, indicating continued momentum in the early months of 2026.
Transparency, investor confidence drive growth
The apex bank governor attributed the sharp rise in reserves to improved transparency and credibility in foreign exchange management.
According to him, reforms introduced by the central bank have enhanced investor confidence and encouraged stronger foreign exchange inflows.
He explained that reserve management practices are now more focused on capital preservation, liquidity and long-term sustainability.
These adjustments, he said, have strengthened Nigeria’s ability to withstand external shocks and meet its international obligations.
The improved reserve position also enhances the country’s capacity to support exchange rate stability, a critical factor in the performance of the naira against the United States dollar.
What this means for the naira, the economy
The surge in net external reserves is widely seen as a positive signal for Nigeria’s macroeconomic outlook.
Experts say a stronger reserve base typically provides the central bank with greater firepower to intervene in the foreign exchange market when necessary, helping to reduce excessive volatility.
Analysts note that the improvement may also help attract additional foreign portfolio and direct investment, as stronger reserves often signal reduced country risk.
“For businesses and consumers, sustained reserve growth could translate into a more stable exchange rate environment, improved access to foreign exchange and potentially lower imported inflation over time,” Janet Ogochukwu, economist and senior banker, told Legit.ng
CBN reaffirms commitment to stability
Cardoso described the end-2025 reserve level as strong validation of the central bank’s ongoing policy reforms and external sector adjustments.
He emphasised that the progress represents not just a rise in numbers but a meaningful strengthening of both the level and quality of Nigeria’s external buffers over the past three years.
He reaffirmed the commitment of the Central Bank of Nigeria to maintaining adequate reserve buffers, ensuring orderly foreign exchange market operations and reinforcing confidence in Nigeria’s external position.
Source: Getty Images
With reserves now at their strongest in years, attention will shift to how sustained inflows and disciplined policy implementation can further support the naira and consolidate macroeconomic stability in 2026 and beyond.
Nigeria’s external reserves rise by $66 million
Legit.ng earlier reported that Nigeria’s external reserves recorded a modest but significant increase at the end of January, rising by $66 million to $46.11 billion, data from the Central Bank of Nigeria (CBN) show.
The 1.6 per cent month-on-month gain from $45.45 billion in December 2025 offers renewed support for the country’s foreign exchange buffers, following months of pressure driven by global volatility and domestic FX demand.
The improvement comes at a time when the naira is enjoying its strongest run in nearly two years, reinforcing market confidence that recent reforms and tighter policies are beginning to yield results.
Source: Legit.ng
