Nigeria’s Foreign Reserves Grow by $420m, Bonny Light Climbs
Nigeria’s foreign reserves climbed by $420 million this week amidst a positive oil earnings outlook for the second half of the year, according to the latest update from the Central Bank (CBN).
The Apex Bank data on external reserves showed that the gross balance surged to $37.854 billion towards the end of the week, from $37.432 billion at the beginning of the week.
The nation’s external reserves expanded as Nigeria’s oil grade Bonny Light price surged in the commodity market, while reports showed increased oil output. Crude prices declined for the first time in three weeks, with Brent crude slipping over 1% to $69.48 per barrel, while US West Texas Intermediate (WTI) futures hovered at $67.58 per barrel.
Oil prices declined as a result of geopolitical risk sentiment following President Donald Trump’s 50-day ultimatum to Russia for a ceasefire, which calmed fears of immediate supply disruptions.
Supply risks resurfaced as drone strikes in Iraq’s Kurdistan region slashed output by up to 150,000 barrels per day (bpd), and persistent instability in the Middle East. Israeli airstrikes in Syria continue to cloud the market outlook.
Domestically, Nigeria’s Bonny Light crude edged up by 0.31% to $74.38 per barrel from $74.15 the previous week, supported by a modest rebound in demand dynamics.
This uptick, alongside improving production levels, contributed to a $420 million accretion in the country’s external reserves, which rose to $37.85 billion from $37.43 billion.
In its commentary note, analysts at Cowry Asset Limited said the increase marks continued momentum in reserve build-up, driven by stronger oil earnings and reduced Central Bank of Nigeria (CBN) FX interventions.
Recent data from the NUPRC shows that average daily crude oil production—excluding condensates—rose by 3.6% to 1.51 million barrels per day (mbpd) in June 2025 from 1.45 mbpd in May.
This marks the first time in five months that Nigeria has met its OPEC production quota, reflecting improvements in operational efficiencies and security around key oil-producing assets.
Cowry Asset Limited expects the naira to record further gains as improved oil output and elevated prices drive higher dollar inflows, which could sustain the current pace of reserve accretion.
The positive oil earnings outlook, combined with steady capital inflows, should offer continued support for the naira and enhance near-term FX market stability. #Nigeria’s Foreign Reserves Grow by $420m, Bonny Light Climbs Treasury Bill Yield Falls as Investors React to Disinflation
