Victor Ezeja
Nigeria’s external reserves have reached a significant milestone, hitting a four-year high of $41.046 billion as of August 20, 2025.
This achievement marks the highest level since December 2021 and reflects a notable recovery from the reserves’ depletion in recent years.
Join our WhatsApp ChannelThis represents a significant recovery from the low of $31 billion in 2024, when the Central Bank of Nigeria (CBN) drew down reserves to defend the naira.
The external reserves have recorded a steady increase in August 2025, rising by $1.46 billion month-to-date (from $39.54 billion on August 1 to $41 billion on August 19), averaging a daily accretion of $81 million.
Experts and analysts attribute the development to ongoing Central Bank reforms and increased foreign inflows.
READ ALSO: How Nigeria’s External Reserves Rose By 5.6% To $38.8bn In 2024 — CBN
Reacting to the development, Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., stated that the improvement was a result of CBN reforms aimed at cleaning up the forex market and attracting investors.
Olubunmi listed several actions that helped to rebuild market confidence, including the introduction of the Nigeria FX Code, the unification of exchange rates, and the clearing of a $7 billion forex backlog.
The reserves surge has driven the naira’s appreciation, with the official exchange rate strengthening to N1,535.78/$ (as of August 21, 2025) from N1,536.73/$ previously. The parallel market rate stabilized at N1,545/$.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
