External Reserves Fall as CBN Defends Naira
Nigeria’s gross external reserves fell eight times since the first week in 2025, amidst a slowdown in US dollar inflows and sustained FX intervention. Inflows from $2.2 billion Eurobond sales have not affected the gross balance in the nation’s external reserves significantly.
According to data from the Central Bank of Nigeria (CBN), the gross external reserves settled at $40.350 billion last week. The foreign reserves declined from $40.920 billion in the first week of 2025. Analysts said inflows appear to have moderated as first OMO bills auction saw moderate subscriptions.
While the market experienced aggressive FX intervention, the trend has eased significantly in the New Year. Last week, the Apex Bank sold $300 million to authorised dealer banks to boost FX liquidity in the official window. The auction was conducted three times.
On Tuesday, the CBN intervened in the forex market, selling $98.75 million to banks between the rate of N1,545 – N1,553 per US dollar.
Also on Wednesday, the Apex Bank intervened in the forex market again as demand pressures persisted, selling $47.35 million to banks between the rate of N1,545 – N1,560.
And on Thursday, the CBN intervened for the third consecutive session yesterday, selling $154.8 million between the rates of N1,545 and N1,555, bringing total FX sales for the week to $300.9 million, TrustBanc Financial Group Limited said in a note.
The Nigerian FX market in December showcased a notable improvement in liquidity, largely attributed to the introduction of the “BMATCH” trading platform and increased dollar sales from exporters.
Throughout the month, the naira progressively strengthened, supported by a higher supply from foreign portfolio investors and weak importer demand, according to AIICO Capital Limited. Hence, exchange rates fluctuated between N1,500 and N1,693, with the naira closing at N1,535.82, appreciating by 8.18% in the last month of 2024
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s crude oil production (including condensates) declined by 1.4% to 1.67 million barrels per day (mb/d) in December from 1.69 mb/d in November.
Production volume from the Escravos slipped by -4.0% and Agbami declined by -19.9% in December. These production terminals experienced declines which offset production increases from the Brass (+13.8%), Bonny (+3.1%), Tulja-okwuibome (+1.4%), Odudu (+0.9%) and Forcados (+0.7% m/m) terminals.
The average crude oil production (including condensates) for 2024 settled at 1.55 mb/d versus 1.47 mb/d in 2023. The oil production volume was below FG’s 1.78 mb/d target by 0.23mb/d. #External Reserves Fall as CBN Defends Naira 2025 Budget: Osun Govt Targets N109bn IGR
