Economic analysts have forecasted that Nigeria’s foreign reserves could hit $45 billion by December 2025, bolstering the Central Bank of Nigeria’s (CBN) capacity to stabilize the foreign exchange market and provide economic support.
According to CBN data, reserves climbed to $41 billion last Tuesday, the highest level in 44 months, signaling a rebound after previous depletion caused by external debt servicing.
The reserves have seen a consistent upward trend this August, rising by $1.56 billion from $39.54 billion on August 1 to $41.11 billion on August 22, reflecting a 3.95 percent increase.
In its weekly market report, Cowry Assets Management highlighted that steady offshore inflows and possible government external borrowings are expected to sustain this momentum. The firm projected reserves could rise to $45 billion, provided global conditions remain stable.
“With this stronger reserve position, the CBN will have greater flexibility to continue its interventions in the FX market, supporting relative stability in both official and parallel market rates,” the analysts said.
However, risks remain, particularly if global financial shocks or sudden outflows occur. Despite this, the reserves build-up marks a significant milestone for Nigeria’s economic resilience.
Similarly, analysts at Meristem Securities expressed optimism, predicting that the reserves are likely to remain above $40 billion if current trends continue.
They noted that higher oil receipts, increased portfolio inflows, and stronger non-oil export performance will play a crucial role in sustaining the momentum.
Meanwhile, experts at AIICO Capital pointed out that the absence of early-week CBN intervention created liquidity pressures, but later inflows—including about $50 million alongside oil receipts—helped narrow spreads. By week’s end, the naira traded between ₦1,534.50 and ₦1,536.00 per dollar, depreciating slightly to ₦1,535.04/$, before closing at ₦1,536.42/$.
