Nigeria’s Foreign Reserves Hit $41.7bn as Bonny Light Crude Gains – CBN

Nigeria’s gross external reserves have climbed to $41.698 billion, according to the latest foreign exchange figures released by the Central Bank of Nigeria (CBN). Commodity market data also showed Bonny Light crude closing higher at $68.56 per barrel.

The country’s foreign reserves have continued an upward trajectory, despite intermittent dollar sales to authorised dealers and banks in efforts to support the naira at the official foreign exchange market.

According to CBN records, Nigeria last recorded a similar reserve balance in May 2021. Analysts link the sustained growth to consistent inflows from non-oil exporters and remittances from Nigerians abroad.

Financial experts noted that the incremental build-up offers a vital cushion against external shocks such as volatile oil prices and exchange rate pressures. It also strengthens the CBN’s ability to intervene in the FX market when required, thereby stabilising the naira.

Persistent foreign portfolio inflows have further boosted reserves, underscoring renewed investor confidence. This follows the CBN’s success in funding dollar repatriation during the first quarter, which reassured investors of the system’s liquidity.

The Nigerian market had previously faced turbulence when former US President Donald Trump’s universal tariff policy triggered an exit of some foreign investors. The heightened dollar demand was, however, adequately met by the CBN, signalling resilience in the country’s FX market. This, analysts say, helped restore investor confidence and spurred renewed capital inflows.

Looking ahead, analysts predict that increased crude oil production will boost Nigeria’s foreign exchange earnings in 2025, even as global oil prices remain volatile.

Crude prices ended weaker globally amid renewed concerns about slowing demand. The International Energy Agency (IEA) revised its 2025 demand growth forecast down to 750,000 barrels per day, citing weaker consumption in emerging markets and expected declines across OECD economies.

OPEC, however, projected stronger demand, forecasting growth of 1.3 million barrels per day this year and 1.4 million barrels per day in 2026, driven mainly by non-OECD countries.

Market sentiment remains cautious, with traders monitoring China’s aggressive stockpiling, already totalling 187 million barrels this year and the impact of new Western sanctions on Russian crude exports.

These concerns have kept global prices under pressure, despite diverging forecasts from the IEA and OPEC. In contrast, Nigeria’s Bonny Light crude bucked the trend, gaining 2.16% to settle at $68.56 per barrel.