CBN Governor says reforms in forex management and transparency have transformed reserve quality, lifting investor confidence and strengthening macroeconomic stability……
Nigeria’s external reserve position has recorded a dramatic turnaround, with net foreign exchange reserves surging by 772 percent within two years, underscoring what monetary authorities describe as a structural shift in the country’s external sector management.
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed on Monday that net reserves climbed from just $3.99 billion at the close of 2023 to $34.80 billion as of December 2025.
The disclosure follows last week’s post-Monetary Policy Committee (MPC) briefing, where the CBN indicated that Nigeria’s gross external reserves stood at $50.45 billion as of February 16, 2026, a figure that further reflects the steady rebuilding of the country’s financial buffers.
Cardoso attributed the sharp improvement to deliberate reforms aimed at restoring transparency and credibility in the foreign exchange market. According to him, strengthened policy coordination and disciplined reserve management have played a pivotal role in attracting stronger FX inflows while enhancing liquidity and capital preservation.
He emphasized that the rise in net reserves signals more than just higher numbers. It represents, in his words, a fundamental upgrade in the quality of Nigeria’s reserves, shifting from fragile positions to more durable and sustainable buffers.
In a striking comparison, the 2025 net reserve position of $34.80 billion surpasses Nigeria’s total gross reserves at the end of 2023, which were recorded at $33.22 billion. This, analysts say, highlights the depth of the turnaround achieved within a relatively short period.
Year-on-year figures also tell a compelling story. Net reserves rose from $23.11 billion at the end of 2024 to $34.80 billion by the end of 2025. Within the same timeframe, gross external reserves increased from $40.19 billion to $45.71 billion, a $5.52 billion expansion.
The CBN Governor noted that the strengthening reserve position enhances Nigeria’s capacity to meet external obligations, stabilize the exchange rate, and reinforce overall macroeconomic resilience amid global uncertainties.
He described the end-2025 reserve milestone as strong validation of the Bank’s ongoing reforms and adjustments in the external sector, reaffirming the institution’s commitment to sustaining adequate buffers and maintaining orderly foreign exchange market operations.
With gross reserves now above the $50 billion mark, the latest figures may serve as a confidence signal to investors watching Nigeria’s macroeconomic trajectory suggesting that the country’s external position is on firmer ground than it has been in years.
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