How Nigeria Rebuilt Net FX Reserves from $3.99bn to $34.8bn in Two Years — Cardoso
Nigeria’s net foreign exchange reserves have surged by an extraordinary 772 per cent in just two years, rising from $3.99 billion at the end of 2023 to $34.80 billion by December 2025, Governor of the Central Bank of Nigeria, Olayemi Cardoso, has disclosed.
The dramatic increase, described by the apex bank as a “fundamental improvement in reserve quality,” underscores a significant rebuilding of Nigeria’s external buffers following a period of severe foreign exchange pressures.
Cardoso in a statement revealed that the 2025 net reserve figure not only represents a sharp recovery but also exceeds the country’s total gross external reserves at the end of 2023, which stood at $33.22 billion — a benchmark that highlights the scale of the turnaround.
Net reserves, which exclude short-term liabilities and encumbrances, are widely considered a more accurate reflection of a country’s readily deployable foreign exchange strength.
According to the CBN, net reserves climbed from $23.11 billion at end-2024 to $34.80 billion at end-2025. Over the same period, gross external reserves increased from $40.19 billion to $45.71 billion — a $5.52 billion rise. As of February 16, 2026, gross reserves stood higher at $50.45 billion.
Cardoso attributed the surge to improved transparency in foreign exchange management, restored market confidence, stronger export earnings, and rising diaspora remittances. He noted that sustained reforms in the FX framework have enhanced credibility, attracted capital inflows, and strengthened reserve management practices focused on capital preservation and liquidity.
The Governor said the improvement represents more than a nominal increase in dollar holdings; it reflects enhanced resilience, improved capacity to meet external obligations, and stronger ability to stabilise the exchange rate.
“This represents a substantial strengthening in both the level and quality of our external buffers over the past three years,” he stated.
The CBN maintained that building and preserving adequate reserve buffers remains central to its mandate of safeguarding macroeconomic stability and ensuring orderly foreign exchange market operations.
With net reserves now nearly nine times higher than their 2023 level, the apex bank believes Nigeria’s external position is significantly more robust — positioning the economy to better absorb global shocks amid ongoing domestic and international uncertainties.