By Erewunmi Peace

Nigeria’s external reserves have surged to $41 billion, the highest level recorded in nearly four years, according to fresh data from the Central Bank of Nigeria (CBN). This marks a 44-month high, surpassing levels last seen in December 2021.

CBN figures show that as of August 19, 2025, reserves stood at $41.00 billion, representing a sharp increase of $1.46 billion (3.69%) from the $39.54 billion recorded at the beginning of the month. This significant rise is attributed to improved foreign exchange inflows, higher crude oil earnings, and strengthened monetary policies.

The apex bank said the uptick reflects robust FX market performance and ongoing reforms aimed at stabilizing the naira and boosting investor confidence.

“The steady accretion to reserves enhances our capacity to manage liquidity and maintain stability in the foreign exchange market,” a CBN source stated.

Year-to-date, external reserves have grown modestly, moving from $40.88 billion on December 31, 2024, to the current level. Analysts believe this development will bolster Nigeria’s ability to defend the naira, improve credit ratings, and attract more foreign investments.

The CBN has also reiterated its long-term target of building reserves to $100 billion to further strengthen economic resilience.

This milestone comes as the naira continues its recent appreciation trend in the official market, supported by improved dollar supply and policy consistency.