Nigeria’s foreign reserves have risen to $41 billion, a milestone last recorded nearly four years ago, with analysts crediting the increase to improved pipeline security and a rebound in crude oil production.
Speaking on Channels Television’s News at 10 on Sunday, data analyst Babajide Ogunsanwo explained how three interlinked events have contributed to the surge in the Central Bank of Nigeria’s (CBN) gross external reserves.
“Three events are linked. The first event is improved pipeline security because of better security for the pipelines. That is linked to higher crude oil production. And higher crude oil production is linked to the increase in the Central Bank of Nigeria’s gross external reserves. So, three events linked. Improved pipeline security is linked to improved crude oil production,” Ogunsanwo said.
Ogunsanwo stated further that for much of the last four years, Nigeria struggled to meet its production targets, with crude oil exports falling below an average of 1.09 million barrels per day between December 2020 and December 2024.
“Nigeria’s average daily crude oil exports dropped below 1.09 million barrels per day. So, we’ve had that extensive period, four-year period of crude oil exports sub one million dollars. But based on the facts we have from the Central Bank, they’ve said that from the beginning of this year, January, average crude oil exports have gone above one million barrels per day,” Ogunsanwo noted.
Beyond improved reserves, Ogunsanwo pointed to what he described as “associated benefits” of higher crude oil production. He noted that increased collaboration with other African oil-producing countries under the OPEC umbrella.
“We’re also seeing even unassociated benefits, collateral benefits from our crude oil exports.
And what I mean is the African OPEC chief of defense staff, I’m talking about Algeria, Congo, Equatorial Guinea, Gabon, Libya. They’ve said this week, starting from tomorrow, they are coming into Nigeria to join other African countries to meet with the chief of defense staff to really talk about collaboration. They’ve said their willingness to collaborate is at the highest.
“So, in all, a lot of benefits based on what has happened within these three events that I’ve said are linked. Improved pipeline security has led to higher crude oil production. Higher crude oil production has led to higher crude oil exports,” Ogunsanwo stated.
Backstory
Nigeria’s foreign exchange reserves rose to $41.00 billion on August 19, 2025, the highest level in 44 months.
- This is according to figures published by the Central Bank of Nigeria (CBN) on its website.
- The CBN data shows that the reserves have staged a strong rally in August, adding about $1.46 billion month-to-date, from $39.54 billion on 1 August to $41.00 billion by 19 August.
- The build-up began in earnest from early August, when reserves crossed the $40 billion threshold on 7 August, after closing July below $39.4 billion.
- From there, the pace of accretion quickened: reserves advanced to $40.5 billion by 12 August and crossed $41 billion just a week later.
- The new trajectory comes after months of gradual depletion and volatility, largely attributed to intense pressure from external debt repayments.
What you should know
- Earlier this month, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the country’s oil production surpassed 1.8 million barrels per day (bpd) in July, with current average output at 1.78 million bpd.
- The CEO of the regulatory agency Gbenga Komolafe stated that the output increase, largely possible due to the step-up in security operations, is part of a push to boost oil production by 1 million bpd to 3 million bpd.
- Also, Nigeria’s average daily crude oil production rose to 1.507 million barrels per day (bpd) in July 2025, surpassing the Organization of the Petroleum Exporting Countries’ (OPEC) target for the second month in a row.
