Nigeria’s foreign exchange buffers have surged dramatically over the past two years, with net reserves jumping from $3.99 billion at the end of 2023 to $34.8 billion by the close of 2025, a remarkable 772% increase.
The growth now puts net reserves above the country’s total gross external reserves recorded in 2023.
The governor of the Central Bank of Nigeria, Olayemi Cardoso, attributed the surge to currency management reforms and improved transparency in the foreign exchange market.
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He noted that dismantling multiple exchange rate windows and unifying the currency market has restored credibility, attracted stronger inflows, and boosted investor confidence.
Year-on-year gains were substantial: net reserves rose from $23.11 billion at the end of 2024 to $34.8 billion by end-2025, a 50.6% increase, while gross reserves expanded from $40.19 billion to $45.71 billion over the same period.
By February 2026, gross reserves had reached $50.45 billion, underscoring continued momentum.
Cardoso emphasized that the stronger reserve position enhances Nigeria’s capacity to meet international obligations, stabilise the naira, and absorb external shocks.
For Africa’s largest economy, this remarkable turnaround signals strengthened external fundamentals and underscores the effectiveness of sustained policy reforms aimed at market credibility and long-term sustainability.
