Nigeria's Foreign reserves have surged to their highest level in six years, a big boost for the naira in the foreign exchange market.

Data from the Central Bank of Nigeria (CBN) showed that the country’s external reserves climbed to $42.57 billion as of October 7, 2025.

The current balance of FX reserves is the highest level since 2019.

The increase reflects improved oil export receipts, higher remittance inflows, and sustained investor confidence following recent monetary and fiscal reforms.

Naira exchange rate

The rise in reserves has helped ease pressure on the Nigerian currency, as the naira continues to recover the value it lost in recent months.

On Wednesday, October 8, the strong performance continued in the Nigerian Foreign Exchange Market (NFEM) as the naira appreciated by 47 kobo, or 0.03% to close N1,470.62/$1, compared with N1,471.09/$1 recorded on Tuesday.

Naira in the black market

In the parallel market, the Nigerian currency lost N5 to exchange at N1,485/$1 on Wednesday, down from N1,480/$1 in the previous session.

Traders attributed the decline to renewed foreign exchange demand outpacing supply in recent days.

World Bank economic outlook for Nigerians

Meanwhile, the World Bank has expressed cautious optimism about Nigeria’s economic outlook, noting that recent policy reforms, including the removal of fuel subsidies, naira devaluation, and tax measures, have improved key macroeconomic indicators.

In its latest update, the multilateral lender said the Nigerian economy expanded by 3.9% year-on-year in the first half of 2025, up from 3.5% in the same period of 2024.

Growth, it said, was driven by stronger performance in services, non-oil industries, and improvements in oil production and agriculture.