Nigeria’s foreign exchange reserves have risen to their highest level since November 2021, driven by stronger oil export earnings and increased foreign portfolio inflows.
Data from the National Bureau of Statistics shows the country recorded a current account surplus of $4.98 billion in the first half of 2025, reflecting a sustained improvement in external balances since the final quarter of 2022.
Crude oil shipments, which accounted for 87 per cent of Nigeria’s export receipts in the period, provided the largest boost.
The improved reserve position has also been supported by rising demand from international investors for Nigerian debt instruments, where yields remain significantly higher than peer emerging markets.
A Bloomberg index tracking local bonds shows a 26.7 per cent gain so far this year, the strongest since at least 2020.
The naira has responded positively to the inflows, appreciating to ₦1,495.25 per dollar on Monday, its strongest level since February 2025.
Analysts note that the currency’s stability, alongside easing inflation, could create space for the Central Bank of Nigeria to consider its first rate cut in five years at its September 23 meeting.
Market experts say the rise in reserves provides a stronger buffer for the currency and will be critical in sustaining investor confidence.
However, they caution that Nigeria must consolidate the gains by deepening reforms and expanding non-oil exports to reduce vulnerability to external shocks.
