Nigeria’s external reserves have surged to $40.11 billion as of July 2025, marking the highest level in nearly a year, according to Central Bank Governor Yemi Cardoso.
Cardoso made the disclosure during the Monetary Policy Committee (MPC) briefing held on Monday, July 22, stating that the current reserves provide approximately 9.5 months of import cover—a key indicator of the country’s ability to withstand external shocks and support currency stability.
“This rebound in our external reserves reflects the outcome of deliberate policies aimed at restoring macroeconomic stability and rebuilding investor confidence,” Cardoso told reporters during the session.
The last time Nigeria’s reserves crossed the $40 billion threshold was in November 2024, when it briefly reached $40.2 billion, before dipping amid global economic headwinds and domestic fiscal pressures.
Analysts have interpreted the latest figures as a sign of recovery in Nigeria’s foreign exchange position, especially amid ongoing efforts by the Central Bank to manage liquidity, strengthen the naira, and attract foreign capital.
The MPC also voted to maintain the Monetary Policy Rate at 27.5%, citing the need to sustain gains in price and exchange rate stability.
The reserve increase comes at a time when the Central Bank is being lauded for a series of reforms, including banking sector recapitalization and adjustments to the foreign exchange framework—initiatives that have earned Cardoso recognition in the financial sector.
Despite challenges with non-performing loans in some financial institutions, as recently noted by an MPC member, the reserve growth is expected to boost investor sentiment and improve Nigeria’s credit outlook in the near term.
