Nigeria’s external reserves hit $40.159 billion on August 7, according to the CBN movement in reserves data published by the Central Bank of Nigeria. This marks a seven-month High for the Nation after it last hit the $40 billion mark on January 22, 2025.
What is Driving Foreign Reserves Growth
CBN has overhauled its foreign exchange management, having introduced the Nigeria Foreign Exchange Code, which enforces ethical standards and transparency in FX dealings, alongside the naira float.
The introduction of the Electronic Foreign Exchange Matching System (EFEMS) in November 2024 has further automated and streamlined FX transactions, leading to reserves growth.
Oil exports have generated over $6 billion in FX inflows in the first half of 2025, bolstered by global prices averaging $80-85 per barrel. Nigeria’s oil output hit 1.8 million barrels per day in July, 2025 with the Dangote refinery carrying out multiple exports, the latest being to India.
There has also been growth in foreign remittances which exceeded $5 billion in Q1 2025. Investor sentiment has grown increasingly positive due to attractive yields on local bonds (averaging 15-18% for 10-year FGN bonds as of August 2025) and Eurobonds (10-11%), which has helped draw portfolio inflows.
All these has led to Moody’s upgrade of Nigeria’s credit rating from Caa1 to B3 with a stable outlook for the country’s economy.
