Nigeria’s foreign reserves have continued their upward climb, rising to $41.698 billion, according to the latest data from the Central Bank of Nigeria (CBN). The steady increase comes as the apex bank maintains dollar sales to banks and authorised dealers to help stabilize the naira at the official market.
The current reserve level is the highest since May 2021, buoyed by sustained inflows from exporters, diaspora remittances, and portfolio investments. Analysts say the build-up offers a crucial cushion against external shocks, including volatile oil prices and currency market pressures.
The CBN’s ability to manage dollar demand has also strengthened investor confidence, with foreign portfolio inflows remaining steady. This confidence was reinforced earlier when the bank successfully handled dollar repatriation commitments in the first quarter of the year.
Analysts recall that global uncertainties, particularly former U.S. President Donald Trump’s tariff policy, had triggered significant capital outflows from Nigeria. However, the CBN’s intervention during that period demonstrated its ability to absorb unexpected shocks, further boosting investor sentiment.
Looking ahead, analysts expect Nigeria’s rising oil production to support stronger forex receipts from crude sales in 2025. Already, Bonny Light crude posted gains of 2.16%, closing at $68.56 per barrel, outperforming the broader global trend.
Globally, crude oil prices remain under pressure amid renewed concerns about slowing demand. The International Energy Agency (IEA) recently cut its 2025 growth forecast to 750,000 barrels per day, citing weak demand in emerging markets and a projected contraction across OECD economies.
Conversely, OPEC has projected a more optimistic outlook, with global oil demand expected to grow by 1.3 million barrels per day this year and 1.4 million barrels per day next year, largely driven by non-OECD countries.
Despite diverging forecasts, traders remain cautious about China’s capacity to maintain its rapid stockpiling, which has already reached 187 million barrels this year. Additional uncertainty surrounds the potential impact of new Western sanctions on Russian crude exports.
For Nigeria, however, the combination of stronger reserves, consistent inflows, and a modest rebound in oil prices signals resilience and growing capacity to withstand global market volatility.
