Naira Maintains Strength as External Reserves Hit $40.15bn, Highest in Eight Months

Nigeria’s external reserves have surged to an eight-month high of $40.15 billion, according to latest Central Bank of Nigeria (CBN) data, representing a 1.5 per cent rise from $39.54 billion recorded on August 1, 2025. The last time reserves reached this level was January 20, 2025.

The naira maintained relative stability across both the official and parallel foreign exchange markets. At the Nigerian Foreign Exchange Market (NFEM), the currency closed on Friday at ₦1,533.56 per dollar, a marginal 1.61 per cent depreciation from Monday’s ₦1,531.95, but still up 0.5 per cent since the start of the year. In the parallel market, the naira remained steady at ₦1,560/$ through the week, having appreciated 6.4 per cent year-to-date from ₦1,660/$ in January.

The $2.2 billion reserve build-up in July marked the strongest monthly increase since July 2024. Analysts attribute the rise to higher offshore investor inflows, lower foreign exchange demand driven by reduced import activity, and improved macroeconomic stability, which has boosted investor confidence.

With reserves now able to cover 11.9 months of imports or 8.2 months when services are included the CBN has greater capacity to sustain interventions in the FX market, helping to keep the naira stable.

Market analysts project further reserve growth, underpinned by persistent foreign capital inflows and planned external borrowings. The naira is forecast to close the year within the ₦1,490–₦1,520/$ band.

The development, according to the Presidency, underscores the impact of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which it says has strengthened currency stability, enhanced investor confidence, and reinforced macroeconomic resilience.

“These gains reflect the Renewed Hope Agenda in action,” said Kamorudeen Yusuf, Personal Assistant on Special Duties to the President.