Nigeria’s Gross External Reserves Climb to $41.7bn –CBN Data
Nigeria’s gross external reserves surged further to $41.698 billion, according to updated FX data released by the Central Bank, with data from the commodity market showing Bonny surged to $68.56 per barrel.
The country’s foreign reserves maintained an uptrend amidst intermittent US dollar sales to authorised dealers and banks to support the naira at the official currency market.
The gross balance of this amount was last seen in May 2021, according to data obtained from the Apex Bank. The economy has seen successive inflows from exporters and remittances from abroad.
Analysts said incremental build-up provides a critical buffer against external vulnerabilities such as volatile oil prices and currency pressures.
It also enhances the Central Bank of Nigeria’s (CBN) capacity to intervene in the foreign exchange market when necessary, thereby helping to stabilize the naira.
Foreign portfolio inflows have also been persistent, reflecting investors’ confidence in the forex market after the Central Bank of Nigeria (CBN) successfully proved it can fund dollar repatriation, as seen in the first quarter of the year.
The Nigerian financial market was tested by President Donald Trump’s universal tariff hike that forced some foreign investors to exit positions. The move triggered offshore investors’ rotation out from the Nigerian market, and the huge demand for dollar was adequately funded by the CBN.
The signal that the market can survive with such unanticipated shock boosted offshore investors’ confidence, and this has triggered a steady flow of hot money into the country.
With increased oil production, Nigeria is positioned to experience improved fx receipts from hydrocarbon sales in 2025, analysts said, noting the fluctuation in the global commodity market.
Crude oil prices closed lower, weighed down by renewed concerns over slowing global demand. The International Energy Agency (IEA) cut its 2025 demand growth forecast to 750,000 barrels per day, citing muted consumption in emerging markets and a looming contraction in OECD demand.
In contrast, OPEC struck a more optimistic tone, projecting growth of 1.3 million barrels per day this year and 1.4 million next year, driven primarily by non-OECD countries.
Beyond the demand outlook, traders remain cautious about China’s ability to sustain its aggressive stockpiling—already amounting to 187 million barrels this year—and the uncertain impact of fresh Western sanctions on Russian oil exports.
These concerns have reinforced bearish sentiment, keeping prices under pressure despite the divergent projections from the IEA and OPEC. In contrast to the global trend, Nigeria’s Bonny Light crude gained 2.16% to close at $68.56 per barrel. VFD Group Forecasts Q4 Profit to Settle at N2.45 Billion
