Nigeria’s net foreign exchange reserves surged 772% in two years, rising from $3.99 billion at the end of 2023 to $34.80 billion by December 2025, CBN Governor Olayemi Cardoso announced on Monday a transformation he credited directly to the FX reforms he has driven since taking office, with gross reserves climbing further to $50.45 billion by mid-February 2026, the highest level in 13 years.
- Net reserves: $3.99bn (end-2023) → $23.11bn (end-2024) → $34.80bn (end-2025), a gain of $11.69bn in the final year alone
- Gross reserves: $33.22bn (end-2023) → $40.19bn (end-2024) → $45.71bn (end-2025) → $50.45bn (February 16, 2026)
- The 2025 net reserve figure alone exceeded Nigeria’s entire gross reserves position from just two years prior
- Growth driven by a current account surplus, rising non-oil exports, increased diaspora remittances and stronger investor FX inflows
- Fixed freight and premium structures in supply arrangements insulate Nigeria from some spot market volatility
- CBN reaffirmed commitment to maintaining buffers and orderly FX market operations
The distinction between gross and net reserves matters. Gross figures include all foreign assets held by the CBN; net strips out short-term liabilities and encumbrances, revealing the portion of reserves that can actually be deployed to defend the naira or meet external obligations. That Nigeria’s net position has moved from $3.99 billion to $34.80 billion in 24 months signals a genuine unwinding of the hidden liabilities that had long overstated the headline number. Cardoso’s reforms, which included dismantling multiple exchange rate windows, clearing a backlog of unmet FX demand and restoring price discovery, were designed precisely to attract the inflows now showing up in these figures.
The Bigger Picture: Two years ago, Nigeria’s actual usable FX buffer was under $4 billion for Africa’s largest economy a precarious position that constrained monetary policy, rattled investors and contributed to the naira’s collapse. The recovery to $34.80 billion net is not just a balance sheet improvement; it is a credibility restoration. For businesses and investors who spent 2022 and 2023 pricing in Nigeria’s currency risk at a significant premium, this data demands a repricing. The reform playbook transparency, unified rates, diaspora remittance capture is now producing measurable results. The test ahead is whether Nigeria can sustain these buffers through a Hormuz-driven oil price shock while the bank recapitalisation deadline of March 31, 2026 adds another layer of pressure to the financial system.
Source: The Punch / Nairametrics
