Nigeria’s external reserves climbed to $42.03 billion on September 19, 2025, marking the highest level since late September 2019 and setting a six-year (72-month) peak.
The latest data from the Central Bank of Nigeria (CBN) as of Monday show reserves at $42.03 billion, up from $41.99 billion the previous day and well above $41.42 billion at the start of September.
The last time reserves were higher was on September 26, 2019, when they stood at $42.05 billion. The latest figure extends a sustained rally that began in July and has gained speed this month.
The new high is significant for market confidence, boosting Nigeria’s import cover and the Central Bank’s policy credibility.
How have the reserves performed so far in September
Nairametrics observed that the buildup is not a one-off spike. Throughout September, every recorded session has shown an increase, delivering 13 consecutive daily gains across 14 reporting days.
From the start of September to the 19th, reserves have grown by $610.8 million, or 1.47%. The accretion has been steady, averaging about $47 million per reporting day. The second half of the month has been particularly strong. On September 8, reserves stood at $41.5711 billion. By September 19, they had risen by $461.8 million. In the span of four business days between September 15 and 19, reserves added almost $583.0 million, a reflection of more robust FX inflows and restrained outflows.
Compared with August 29, when the balance was $41.3055 billion, reserves are now stronger by $727.3 million, a 1.76% increase.
Year-to-date trend
Reserves are also in positive territory for 2025. They have risen by $1.15 billion, or 2.83%, from $40.8780 billion at the end of December 2024 to $42.0329 billion in mid-September 2025.
The trajectory was not smooth, with a sharp decline in the first half of the year dragging reserves to a low of $37.1806 billion on July 3, 2025. Since then, the stock has recovered by $4.85 billion, or 13.05%. The September peak is now the highest point of the year, surpassing all prior 2025 readings and reversing earlier losses.
Implications for the economy
The return of reserves above $42 billion strengthens the Central Bank’s capacity to smooth volatility in the FX market and meet external obligations with greater credibility.
It also raises Nigeria’s import cover, a key metric tracked by investors, lenders, and ratings agencies. The six-year high provides a psychological boost that may help encourage portfolio inflows into local assets, provided yields remain attractive and policy direction stays consistent.
Still, the durability of this rally will be tested. Sustaining reserves at or above $42 billion requires a steady pipeline of FX supply from crude oil sales, non-oil exports, diaspora remittances, and foreign portfolio investments. Any slump in oil production, fall in global prices, or resurgence of demand pressure could stall the gains.
On the other hand, further improvements in production volumes, transparent FX operations, and consistent fiscal-monetary coordination could consolidate the milestone and possibly push reserves above late-2019 levels.
In essence, September has flipped the 2025 reserves story from weakness to strength. The test now is whether this momentum can carry through to the fourth quarter and provide lasting stability for Nigeria’s currency and external sector.
