Nigeria’s foreign reserves gain $540m in two weeks

Nigeria’s external reserves rose by $540.28 million in the last two weeks of October, increasing from $42.63 billion on October 13 to $43.17 billion on October 30, 2025, according to data from the Central Bank of Nigeria (CBN).

The growth represents a 1.3 per cent increase over two weeks and a 1.8 per cent rise month-on-month from $42.40 billion recorded at the beginning of October.

The data shows a consistent daily increase in reserves throughout the period, with the highest level of $43.17 billion attained on October 30.

During the review period, the liquid portion of the reserves also grew steadily from $41.98 billion to $42.55 billion, an increase of $579.62 million.

This improvement reflects stronger foreign exchange liquidity for trade settlements and monetary operations.

In contrast, blocked reserves — the portion tied up in commitments or illiquid instruments — declined slightly from $656.45 million to $618.63 million.

The share of blocked funds in total reserves fell from 1.54 per cent to 1.43 per cent, suggesting a healthier and more efficient reserve structure.

The reserves recorded daily incremental growth, indicating steady inflows likely driven by oil exports, remittances, and capital importation.

Between October 20 and 30 alone, reserves rose by nearly $380.7 million, pointing to improved dollar inflows relative to market outflows.

Analysts believe that the CBN’s tighter monetary policy and increased transparency in the foreign exchange market have contributed to the sustained buildup by encouraging the retention of foreign exchange earnings.

Analysts at United Capital Research expressed optimism that Nigeria’s reserves will continue to rise through the final quarter of 2025, supported by stronger oil receipts, higher diaspora remittances, and a favourable trade balance.

The firm noted that as of September 30, 2025, the country’s reserves stood at $42.53 billion — the highest level in over three and a half years — reflecting renewed foreign investment and improving macroeconomic fundamentals.

United Capital further observed that Nigeria’s external reserves now provide over eight months of import cover, offering a significant buffer for monetary stability and investor confidence.

The firm added that this stronger external position is expected to ease pressure on the naira and support exchange rate stability in the short term.

The research group also explained that the CBN’s reported figure represents a 30-day moving average, meaning actual reserves could be slightly higher than the official number.

This approach, it said, smoothens short-term fluctuations and offers a clearer view of the underlying trend.

United Capital concluded that sustained inflows from oil, remittances, and portfolio investments — combined with disciplined foreign exchange management — will help Nigeria consolidate its external balance and reinforce macroeconomic stability in the months ahead.