Nigeria’s external liquidity position recorded a significant boost at the close of 2025, with net foreign exchange reserves rising sharply to $34.80 billion. The development underscores a marked strengthening of the country’s external buffers amid sustained monetary and foreign exchange reforms.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, disclosed that net reserves increased from $23.11 billion at the end of 2024 to $34.80 billion at the end of 2025—an annual rise of $11.69 billion. The improvement represents one of the most notable gains in recent years and signals growing resilience in Nigeria’s foreign exchange management framework.
Even more striking is the comparison over a two-year horizon. Net reserves, which stood at just $3.99 billion at the end of 2023, have since surged dramatically. According to the apex bank, this trajectory reflects not only higher reserve levels but also a significant enhancement in the quality and liquidity of those reserves.
Net Reserves Surpass Previous Gross Levels
In a statement issued by the CBN, Cardoso explained that both gross and net foreign reserves showed considerable improvement by the end of 2025, pointing to stronger external sector fundamentals and the impact of ongoing policy reforms.
Following his remarks at the post-Monetary Policy Committee (MPC) press briefing on February 24, 2026, the governor revealed that gross external reserves stood at $50.45 billion as of February 16, 2026. As of December 31, 2025, net foreign exchange reserves had reached $34.80 billion.
Notably, the end-2025 net reserve figure exceeded Nigeria’s entire gross external reserves recorded at the end of 2023, which stood at $33.22 billion. This means that the country’s liquid and unencumbered foreign exchange buffers at the end of 2025 were stronger than the total headline gross reserve level just two years earlier—a development widely interpreted as a substantial improvement in reserve strength and sustainability.
Gross Reserves Also Post Solid Gains
Gross reserves similarly posted steady growth over the review period. According to Cardoso, gross external reserves increased from $40.19 billion at the end of 2024 to $45.71 billion by the end of 2025, marking a $5.52 billion rise within one year. By mid-February 2026, the figure had climbed further to $50.45 billion.
The CBN governor attributed the improvement in both gross and net reserves to enhanced transparency and credibility in foreign exchange management. He noted that reforms implemented by the Bank have bolstered investor confidence, attracted stronger foreign exchange inflows, and improved overall reserve management practices.
Net reserves—unlike gross reserves—exclude short-term liabilities and other encumbrances embedded in the headline figure. As such, they are widely regarded by analysts and investors as a more accurate measure of a country’s true external buffer and its ability to withstand economic shocks.
Strengthening Macroeconomic Resilience
Cardoso emphasized that the expansion in reserves demonstrates Nigeria’s improved capacity to meet external obligations, support exchange rate stability, and reinforce macroeconomic resilience. Enhanced reserve management strategies, he added, are focused on capital preservation, liquidity assurance, and long-term sustainability.
He described the end-2025 reserve position as validation of the CBN’s ongoing reforms and broader external sector adjustments. The Bank, he affirmed, remains committed to maintaining adequate buffers and ensuring orderly operations in the foreign exchange market.
With both gross and net reserves trending upward, the latest data suggest a strengthening foundation for Nigeria’s external sector—one that policymakers hope will sustain confidence, stabilize the currency environment, and support long-term economic recovery.