Nigeria’s external reserves have surged to $42.03 billion as of September 19, 2025—the highest level since September 2019—marking a major turning point in the country’s foreign exchange outlook.

Fresh figures released by the Central Bank of Nigeria (CBN) show the reserves climbed from $41.99 billion the previous day, extending a remarkable rally that has delivered steady gains throughout September. At the start of the month, the balance stood at $41.42 billion, meaning reserves have added $610.8 million, or 1.47%, in just 19 days.

The last time Nigeria’s reserves were higher was on September 26, 2019, when they reached $42.05 billion. The latest milestone signals renewed market confidence, stronger import cover, and enhanced policy credibility for the apex bank.

Notably, the rise is no fluke. Nairametrics’ analysis shows that reserves have increased in 13 of 14 trading sessions this month, averaging $47 million in daily accretion. Between September 15 and 19 alone, the stock jumped by nearly $583 million, buoyed by firmer FX inflows and tighter outflow controls.

Compared with the August 29 balance of $41.31 billion, reserves are now stronger by $727.3 million, or 1.76%. Year-to-date, they are up by $1.15 billion (2.83%) from December’s closing figure of $40.87 billion, reversing earlier weakness that had dragged the stock to a low of $37.18 billion on July 3. Since then, reserves have rebounded by $4.85 billion, or 13.05%.

Implications for the economy

Analysts say the new six-year high strengthens Nigeria’s capacity to stabilize the FX market and meet external obligations. It also boosts investor sentiment, with the higher import cover likely to attract more portfolio inflows if yields and policies remain favorable.

However, sustainability will hinge on consistent FX supply from crude oil earnings, non-oil exports, diaspora remittances, and foreign investment. Risks remain from potential oil price dips, production setbacks, or renewed demand pressures.

If momentum continues, Nigeria could break above its late-2019 levels, further anchoring confidence in its external position.

September’s performance has effectively rewritten the 2025 reserves story—from midyear weakness to renewed strength. The coming quarter will test whether this recovery can be sustained to deliver lasting currency and external sector stability.