Nigeria’s external reserves climbed to their strongest level in six years, crossing the $42bn mark for the first time since September 2019.

Latest data from the Central Bank of Nigeria (CBN) show that reserves stood at $42.03bn on September 19, 2025, representing a significant rebound from earlier lows this year and providing renewed optimism for the nation’s foreign exchange stability.

The latest figure marks a new 72-month peak and underscores the steady improvement in Nigeria’s reserve position since July, when the stock fell to its lowest point in 2025. Compared with the $41.99bn recorded a day earlier, the September 19 figure reflects an increase of $40m. It also represents a substantial gain from the $41.42bn level recorded at the beginning of September.

The last time Nigeria’s reserves were higher was on September 26, 2019, when they reached $42.05bn. Since then, reserves have faced significant pressure from falling oil prices, capital flow reversals, rising import demand, and foreign exchange market interventions.

What distinguishes the current rally from past temporary spikes is its consistency. Every recorded trading session in September has seen reserves grow, with 13 consecutive daily increases across 14 reporting days.

Between September 1 and 19 alone, reserves rose by $610.8m, or 1.47 per cent, averaging about $47m in daily accretion.

The second half of the month has been particularly strong. Between September 15 and 19, reserves expanded by nearly $583m in just four business days, pointing to stronger foreign exchange inflows and a slowdown in outflows. On September 8, reserves stood at $41.57bn, but within 11 days, they had gained $461.8m.

When compared with August 29, when reserves were $41.31bn, the stock is now higher by $727.3m, representing a 1.76 per cent increase. On a year-to-date basis, reserves have grown by $1.15bn or 2.83 per cent, rising from $40.88bn at the close of 2024.

The recent performance represents a sharp turnaround from earlier in the year, when reserves slumped to $37.18bn on July 3. That level marked the lowest point in 2025 and triggered concerns over Nigeria’s ability to defend the naira or meet external obligations. Since then, however, reserves have gained $4.85bn, a recovery of about 13.05 per cent.

The latest peak not only surpasses all previous 2025 levels but also restores market confidence in Nigeria’s external buffers, which are critical for exchange rate management, investor sentiment, and debt servicing.

The return of reserves above $42bn strengthens the CBN’s ability to stabilise the foreign exchange market. It also enhances Nigeria’s import cover, a key indicator tracked by investors, lenders, and international ratings agencies. Import cover measures how many months of imports a country can finance from its reserves, and higher levels typically translate to stronger external credibility.