Nigeria’s foreign reserves have surged to $41 billion, the highest level in nearly four years, signaling stronger external inflows and renewed economic stability.

According to the Central Bank of Nigeria (CBN), the reserves stood at $41.00 billion as of August 19, 2025, a milestone not seen since December 2021. The apex bank described the rise as “a sharp turnaround after months of gradual depletion driven by external debt repayments.”

The CBN explained that reserves added $1.46 billion in August alone, growing from $39.54 billion on August 1 to $41.00 billion by August 19, a 3.69% increase in under three weeks. On average, Nigeria’s reserves grew by about $81 million per day during the period, driven by stronger FX inflows from crude oil earnings, portfolio investments, and non-oil exports.

“The build-up began in early August when reserves crossed the $40 billion threshold,” the CBN said. “By mid-August, reserves had advanced past $41 billion, reflecting improved liquidity and market confidence.”

The apex bank noted that the stronger reserves base enhances its ability to stabilise the naira, manage liquidity, and cushion against speculative pressures in the foreign exchange market.

From a year-to-date perspective, Nigeria’s reserves have grown by $124 million but most of the gains have been concentrated in the past five weeks following a subdued first half of 2025.

The CBN stressed that the new level strengthens Nigeria’s sovereign credit outlook, reassures investors of the government’s capacity to meet external obligations, and provides a buffer against global financial shocks.

While welcoming the improvement, the Bank cautioned that sustaining the momentum will depend on balancing oil exports, non-oil FX receipts, debt servicing, and fiscal policy direction.

For now, however, the sharp rally places Nigeria on a firmer economic footing, with reserves at their highest point in nearly four years, a development expected to boost investor confidence and ease forex market volatility.