Nigeria’s foreign exchange reserves have crossed the $40 billion threshold, lifted by stronger forex inflows and a modest rise in crude oil production, analysis of Central Bank of Nigeria (CBN) data shows.
Figures released by the apex bank revealed that gross external reserves rose from $37.93 billion on April 30 to $38.30 billion by May 14, and continued climbing to $40.16 billion last week.
Oil Production, OPEC Quota
Nigeria’s crude oil output increased by 0.67 percent in July to 1.51 million barrels per day (mbpd), meeting OPEC+’s quota for the third time in 2025. However, the figure still trails the federal government’s budget benchmark of 2.06 mbpd. Analysts expect further gains in August, which could contribute more significantly to reserve accretion.
CBN Reforms Driving Inflows
Part of the reserves boost has been attributed to sweeping forex reforms introduced by CBN Governor Olayemi Cardoso. Policies aimed at reducing dollar demand pressure, boosting local production, and moderating inflation have also enhanced macroeconomic stability.
The CBN has deepened efforts to diversify forex sources, expand access for manufacturers and retail users, and simplify dollar inflows through the banking system. Initiatives include:
- New product development to encourage diaspora remittances.
- Licensing additional International Money Transfer Operators (IMTOs).
- Implementing the willing buyer–willing seller FX model.
- Ensuring timely naira liquidity for IMTOs and other market participants.
These steps have improved dollar supply channels, strengthened the naira, and increased confidence among both domestic and foreign investors.
Diaspora Remittances and Non-Oil Exports
Diaspora remittances, estimated at $23 billion annually, remain a reliable cushion for Nigeria’s forex market. The CBN has set a target of doubling formal remittance receipts within a year through improved systems and transparency. Non-oil exports, particularly gas, are also being positioned as new forex drivers.
According to market analysts, these reforms have created a more balanced liquidity dynamic, with airlines and foreign investors now able to repatriate funds with less difficulty.
Charlie Bird, Director of Trading at Verto, told participants at Cordros Asset Management’s seminar “The Naira Playbook” that Nigeria is becoming a “darling of foreign investors” due to better access to dollar liquidity under the current CBN reforms
Experts believe sustaining forex reforms and boosting oil and non-oil exports are crucial for maintaining the momentum. The CBN’s policies, combined with fiscal measures to enhance production and curb imports, are expected to consolidate the stability of both reserves and the naira in the months ahead.