Nigeria’s gross external reserves rose to $42 billion this week, the highest level since September 2019, supported by steady inflows and stronger hydrocarbon revenues, according to Central Bank of Nigeria (CBN) data.
In September, inflows into reserves reached $692.28 million, with sustained contributions from oil exports boosting the country’s foreign buffers. Analysts note that the improved reserve position strengthens investor confidence in the CBN’s ability to upstream foreign exchange and stabilise the market.
Higher oil production has also enhanced fiscal performance, providing further support for the naira. Investment banking firm TrustBanc Financial Group Limited observed that the local currency tested new levels in the forex market, breaking the N1,500 per dollar threshold for the first time in months. “It is sentiment, not just supply, that ultimately decides how long the floor holds,” TrustBanc said.
Bullish sentiment dominated the FX market during the week, with the naira gaining across official and parallel windows. At the official market, it appreciated by 0.91% week-on-week to close at N1,487.90 per dollar—its first break below N1,500 since early February 2025. In the parallel market, the naira firmed by 1.05% to an average of N1,521 per dollar.
Analysts say the reserve build-up reinforces the CBN’s capacity to manage supply-demand imbalances and sustain stability in the currency market.
Meanwhile, WTI crude futures retreated to $63.3 per barrel on Friday, marking a third straight session of losses after U.S. President Donald Trump reiterated his preference for lower oil prices, easing fears of supply disruptions from the Russia-Ukraine conflict.
Market watchers expect the naira’s stability to hold in the near term, with supportive liquidity conditions and global dollar weakness underpinning sentiment.
