Nigeria’s gross reserves rose to their strongest level in six years in a boost for the naira that has witnessed modest depreciation in the past weeks.
Data from the Central Bank of Nigeria (CBN) revealed that foreign exchange reserves surged to $45.04 billion as of the 4th of December, 2025, from the $44.66 billion they were at at the end of last month.
Analysts attributed the marginal increase to the $2.4 billion Eurobond issuance in November, which was oversubscribed by 400 percent, FX receipts from oil exports, and resilient remittance inflows.
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The reserves accretion follows a reported increase in the nation’s net reserves to $29 billion compared to $23.11 billion at the end of last year.
“We expect gross official reserves to remain broadly stable, supported by improved market transparency, greater efficiency, and the sustained impact of CBN’s FX market reforms,” FBNQuest Merchant Bank analysts said.
This surge is expected to bring a breather to the naira that fell by 1.8 percent month-on-month to N1446.7 per dollar. The local currency has, however, depreciated further, as it was quoted at N1450.43 per dollar as of Friday, reflecting seasonal FX pressures driven by year-end holiday travel demand and the settlement of import bills by businesses and manufacturers.
Read also: “Detty December” inflows seen boosting Naira
But research analysts at Lagos-based FMDA forecast that inflows from seasonal activities, particularly the “Detty December” festivities, are expected to give the naira a boost.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” the analysts said.
“Consequently, the naira may experience mild appreciation pressure, driven by seasonal inflows associated with holiday activities.”