Nigeria's foreign reserves cross $39bn, as Naira appreciates against dollar 

By Seun Ibiyemi

Nigeria’s foreign exchange reserves have surpassed $39 billion, reaching their highest point in almost three years, according to fresh data from the Central Bank of Nigeria (CBN).

The build-up in reserves coincides with a stronger naira, which has continued to appreciate against the US dollar in both the official and parallel markets.

The reserves, which underpin the currency and safeguard external trade, rose on the back of improved crude oil receipts, steady inflows from diaspora remittances and stronger foreign investment sentiment.

Economists attribute the upward trend to recent monetary policy adjustments aimed at stabilising the exchange rate and restoring investor confidence.

At the Investors’ and Exporters’ (I&E) window, the naira closed at ₦1,180 to the dollar on Monday, up about 3% from last week’s average of ₦1,215.

Parallel market rates also narrowed, with traders reporting an average of ₦1,200 to the dollar.

Bismarck Rewane, CEO of Financial Derivatives Company, said, “The combination of rising reserves and a stronger naira indicates that confidence is gradually returning to the Nigerian economy. Sustaining this progress will require consistent policy direction and a stronger push for non-oil exports.”

CBN Governor Olayemi Cardoso reaffirmed the bank’s commitment to maintaining exchange rate stability while gradually easing demand pressures on the naira. He added that additional measures are being prepared to attract foreign direct investment and strengthen Nigeria’s external position.

Analysts note that if reserves continue to grow, Nigeria will be better positioned to defend the naira against speculative pressure and improve its credit ratings. 

With oil prices steady and capital inflows expected to rise in the months ahead, the currency is projected to continue its gradual appreciation, provided fiscal and monetary policies remain aligned.