Nigeria’s Gross External Reserves Increase to $42.407 bln
Up by about $5.2 billion since July, Nigeria’s gross external reserves increased to $42.407 billion on October 2, from $42.353 billion on Sept. 30, the Central Bank confirmed in its latest update.
The nation’s foreign reserves maintained an uptrend despite a series of FX intervention sales conducted by the Apex Bank to enhance the naira’s spot rate at the official currency market.
Analysts said multiple developments, especially higher FX receipts from hydrocarbon revenue, exporters’ inflows and other remittances from international market is helping accretion.
MarketForces Africa gathered that Dangote Refinery export revenue aided the improvement while foreign portfolio investors participation in the economy supporting the uptrend.
Nigeria’s external reserves stay at the highest level since Sept 2019, data from the Apex Bank revealed. In a commentary note, analysts at TrustBanc Financial Group Limited are seeing a further uptick down the year with a $45 billion estimated gross external reserves balance.
The nation’s foreign reserves ended the first half at $37.210 billion after significant FX intervention in the first and second quarter of the year. US President Donald Trump’s tariff adjustment triggered some portfolio rotation that raised demand for the dollar.
The CBN’s ability to fund foreign portfolio investors’ exit at the time without reintroducing another capital control further reinforces investors’ confidence.
“Structurally, nothing had changed. What shifted was sentiment. Unlike the ex-CBN Governor Godwin Emefiele era, foreign investors were free to exit. The CBN allowed it and funded it. In just two months, it had sold $2.75 billion,” TrustBanc said in a note.
A slew of analysts told MarketForces Africa that the post-naira reform experience in the foreign exchange market has been positive. This has attracted global ratings agencies’ applause, reflecting in sovereign ratings upgrades.Sanwo-Olu Flags Off FNITCC 2025 at Georgia State Capitol
