Nigeria’s external reserves have risen to $40.11 billion as of July 2025, the highest level since November 2024, according to Central Bank Governor Yemi Cardoso. He made the announcement during the Monetary Policy Committee (MPC) briefing on Monday, July 22.
Cardoso stated that the reserves now provide approximately 9.5 months of import cover, marking a major rebound in the country’s foreign currency buffers. This improvement comes amid ongoing efforts to stabilise the exchange rate and restore investor confidence.
Key Economic Indicators
The Central Bank of Nigeria (CBN) highlighted several positive trends:
Gross External Reserves: $40.11 billion, covering 9.5 months of imports
Capital Inflows: Increased, helping to stabilise the foreign exchange market
Crude Oil Production: Improved output contributing to overall economic stability
Non-Oil Exports: Rising levels supporting economic growth
Imports: Declining, further easing pressure on the forex market
Inflation Outlook
Cardoso said internal projections suggest inflation will continue to decline in the coming months, supported by:
Tight Monetary Policy: Reinforcing price stability
Stable Exchange Rates: Reducing imported inflation
Falling PMS Prices: Easing cost-of-living pressures
Harvest Season: Expected to boost food supply and reduce prices
The MPC is scheduled to reconvene on September 22 and 23 to assess economic conditions and decide on further policy actions.
Growth and Inflation Forecasts
The International Monetary Fund (IMF) projects Nigeria’s inflation to fall to 23% in 2025 and drop further to 18% in 2026. Economic growth is expected to rise to 3.3% this year, up from 2.9% in 2024, driven by a recovery in oil output and improvements in the agricultural sector.
