Nigeria’s external reserves increased by $540.28 million in the last two weeks of October, rising from $42.63 billion on October 13 to $43.17 billion on October 30, 2025, according to new data released by the Central Bank of Nigeria (CBN).
The growth represents a 1.3 per cent rise over the two-week period and a 1.8 per cent increase month-on-month from the $42.40 billion recorded at the start of October.
The data shows a consistent daily increase throughout the period, with reserves peaking at $43.17 billion at month’s end.
The liquid portion of the reserves also grew from $41.98 billion to $42.55 billion, reflecting an increase of $579.62 million.
This improvement signals stronger foreign exchange liquidity available for trade settlements and monetary operations.
Conversely, the portion of blocked reserves — funds tied up in commitments or illiquid assets — declined from $656.45 million to $618.63 million, bringing the blocked ratio down from 1.54 per cent to 1.43 per cent.
Analysts say this reduction suggests a healthier reserve composition and more efficient management of Nigeria’s external assets.
The reserves recorded steady daily gains, pointing to consistent inflows likely supported by oil exports, remittances, and foreign capital.
Between October 20 and 30 alone, reserves rose by nearly $380.7 million, indicating stronger foreign exchange inflows relative to outflows.
Analysts attribute the improvement to the CBN’s tighter monetary policy and enhanced transparency in the foreign exchange market, which have encouraged better retention of foreign exchange earnings.
Research analysts at United Capital expressed optimism that the country’s external reserves will maintain their upward trajectory through the final quarter of 2025, buoyed by robust oil export receipts, rising diaspora remittances, and a favourable trade balance.
The firm noted that as of September 30, 2025, Nigeria’s reserves stood at $42.53 billion — the highest in more than three and a half years — reflecting renewed investor confidence and improving macroeconomic fundamentals.
United Capital further highlighted that Nigeria’s reserves now provide over eight months of import cover, offering a strong buffer for monetary stability and investor confidence.
This, they said, is likely to ease pressure on the naira and support exchange rate stability in the short term.
The firm also explained that the CBN’s reserve figures represent a 30-day moving average, which helps smooth short-term fluctuations and may mean actual reserves are slightly higher than reported.
It concluded that continued inflows from oil, remittances, and portfolio investments — combined with disciplined foreign exchange management — position Nigeria to strengthen its external balance and sustain macroeconomic stability in the coming months.
