Nigeria’s external reserves climbed by $540.28 million in the last two weeks of October, rising from $42.63 billion recorded on October 13 to $43.17 billion on October 30, 2025, according to data from the Central Bank of Nigeria (CBN).
The sustained growth indicates an approximate 1.3% growth over two weeks, and a 1.8% increase month-on-month from $42.40 billion at the beginning of October, according to CBN data.
The gross reserves recorded consistent daily increases throughout the review period, with the highest level of $43.17 billion attained on October 30, compared to $42.63 billion at the beginning of the period.
Summary of key movements (Oct. 13–30, 2025)
- Gross Reserves: Up from $42.63bn to $43.17bn (+$540.28m)
- Liquid Reserves: Up from $41.98bn to $42.55bn (+$579.62m)
- Blocked Reserves: Down from $656.45m to $618.63m (–$37.82m)
- Blocked Ratio: Declined from 1.54% to 1.43%
Liquidity improves as blocked funds decline
The liquid portion of the reserves also rose steadily from $41.98 billion on October 13 to $42.55 billion on October 30, an increase of $579.62 million. This improvement suggests enhanced availability of foreign exchange liquidity for trade settlements and monetary operations.
Conversely, blocked funds, the portion of reserves tied up in commitments or illiquid instruments, declined slightly from $656.45 million to $618.63 million over the same period. The blocked share of total reserves fell from 1.54% to 1.43%, indicating a healthier reserve structure and improved efficiency in the management of external assets.
Stability in Accretion Reflects Renewed Market Confidence
The data shows daily incremental growth in reserves, underscoring consistent inflows possibly from oil exports, remittances, and capital importation. From October 20 to 30 alone, reserves gained nearly $380.7 million, suggesting improved dollar inflows relative to market outflows.
Analysts note that the CBN’s tightening stance and improved transparency in the forex window may be supporting higher retention of foreign exchange earnings. The decline in blocked reserves percentage further points to more accessible and deployable foreign assets, which enhances Nigeria’s external position and provides a cushion for currency stabilization efforts.
Analysts’ perspective
Analysts at United Capital Research have expressed optimism that Nigeria’s external reserves will continue their steady ascent in the final quarter of 2025, buoyed by stronger oil export receipts, robust diaspora remittances, and a favourable trade balance. The firm highlighted that as of September 30, 2025, the country’s external reserves had risen to $42.53 billion—the highest level in more than three and a half years—reflecting renewed foreign capital inflows and improving macroeconomic fundamentals.
- According to United Capital, the consistent buildup in reserves underscores Nigeria’s improved external liquidity and resilience against global shocks.
- The analysts noted that the reserves now provide over eight months of import cover, a significant buffer that enhances monetary stability and investor confidence. This stronger external position, they argued, is likely to ease pressure on the naira and support exchange rate stability in the short term.
- The firm further explained that the CBN’s reported figure represents a 30-day moving average, meaning that actual reserves could be marginally higher than the official number. This methodology, it said, smoothens short-term fluctuations and provides a clearer view of the underlying trend.
United Capital concluded that sustained inflows from oil, remittances, and portfolio investments, combined with disciplined foreign exchange management, place Nigeria in a better position to consolidate its external balance and strengthen macroeconomic stability in the months ahead.
Credit: Nairametrics
