Nigeria’s External Reserves Rise to $41bn, Naira Gains Strength

By Diafa Doubra,

Nigeria’s external reserves have surged to $41 billion, sparking renewed confidence in the country’s economy and driving the naira to appreciate to ₦1,545 per dollar in the foreign exchange market. The steady inflow of foreign exchange from crude oil sales, improved remittances, and tighter monetary policies have all been credited for the upward trend.

Financial analysts say the development is a welcome relief, considering the pressure the naira has faced in recent months. They noted that the rise in reserves has given the Central Bank of Nigeria (CBN) more room to intervene in the FX market, thereby easing demand and stabilizing the currency.

However, while the appreciation has brought optimism, experts warn that sustaining the momentum will depend largely on Nigeria’s ability to diversify its revenue sources, curb inflation, and maintain investor confidence. For many Nigerians, the strengthening naira raises hopes of reduced prices of imported goods, though the real impact is yet to be felt at the local markets.