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Nigeria’s External Reserves Reach $40.11 Billion in July 2025 – CBN Governor Cardoso

Published by Tope Fakinlede on July 22nd, 2025.

Nigeria’s External Reserves Reach $40.11 Billion in July 2025 – CBN Governor Cardoso

Nigeria’s foreign reserves rose to $40.11 billion as of July 2025, marking a notable milestone, according to Central Bank of Nigeria (CBN) Governor, Yemi Cardoso. The announcement was made during the Monetary Policy Committee (MPC) meeting held on Monday, July 22, 2025.

Cardoso highlighted that the current reserve level equates to about 9.5 months of import coverage, reflecting a significant improvement in the nation’s external financial standing. This is the highest figure recorded since November 2024, when reserves stood slightly higher at $40.2 billion.

The increase signals a substantial recovery in Nigeria’s external buffers, underscoring the CBN’s ongoing efforts to stabilize the naira and bolster investor confidence.

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Economic Indicators Reflect Growing Stability

The CBN attributed the improved reserve position to multiple positive trends in the economy, including:

Foreign Exchange Market: Sustained stability, bolstered by increased capital inflows

Crude Oil Output: Higher production levels supporting macroeconomic resilience

Non-Oil Exports: Upward trend contributing to a more diversified economy

Imports: Lower import volumes, aiding exchange rate stability

As of July 2025:

Gross External Reserves: $40.11 billion, covering approximately 9.5 months of imports

Capital Inflows: Continued growth, enhancing foreign exchange supply

Non-Oil Exports: Rising volumes helping to strengthen external earnings

Crude Oil Production: Improved output reinforcing national revenue

Imports: Decrease in demand easing pressure on foreign exchange reserves

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Inflation Outlook Appears Promising

Governor Cardoso also shared insights into Nigeria’s inflation trajectory. Projections suggest a downward trend in inflation, supported by several key factors:

Tight Monetary Policy: Expected to maintain price stability

Exchange Rate Stability: Helping ease inflationary pressures

Falling Fuel Prices: Lower PMS costs reducing transport and production expenses

Harvest Season: Anticipated increase in food supply set to ease food prices

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Looking Ahead: Upcoming MPC Meeting and IMF Forecasts

The MPC is scheduled to reconvene on September 22 and 23 to evaluate the economic landscape and determine the next steps for monetary policy.

In its latest assessment, the International Monetary Fund (IMF) projected Nigeria’s inflation to ease to 23% in 2025, with a further decline to 18% in 2026. The IMF also expects economic growth to climb from 2.9% in 2024 to 3.3% this year, buoyed by a rebound in oil production and stronger performance in agriculture.