Naira Strengthens as Nigeria’s External Reserves Climb to Six-Year Peak of $43.42bn
Story: written by Uzuh Rita November 14,2025
The naira recorded a slight appreciation against the US dollar on Thursday in the official foreign exchange market, coinciding with Nigeria’s external reserves rising to a six-year high of $43.42 billion, a development analysts say reflects renewed investor confidence and stronger FX inflows.
According to data from the Central Bank of Nigeria (CBN), the naira gained ₦1.64 or 0.1%, closing at ₦1,441.44/$1, compared to ₦1,443.08/$1 posted on Wednesday at the Nigerian Foreign Exchange Market (NFEM).
However, the story was different in the parallel market, where the local currency weakened slightly by ₦2, ending the day at ₦1,457/$1, down from ₦1,455/$1 recorded previously.
Nigeria’s external reserves have continued to rise steadily, reaching $43.42 billion as of November 12, 2025, the highest level since August 30, 2019, when reserves stood at $43.60 billion. Analysts attribute this growth to improved foreign inflows, stronger oil earnings, and renewed investor optimism following the country’s successful Eurobond issuance.
Experts project that reserves could hit a seven-year high of $46.07 billion, driven by Nigeria’s Eurobond offer, which received massive global interest.
The Debt Management Office (DMO) confirmed that the Eurobond issuance attracted over $13 billion in orders from investors across the UK, North America, Europe, Asia, and the Middle East.
- The 10-year $1.25bn bond (maturing 2036) was priced at a coupon rate of 8.6308%.
- The 20-year $1.10bn bond (maturing 2046) carried a coupon rate of 9.1297%.
Nigerian investors also participated, signalling growing domestic trust in the government’s economic reform programme.
Analysts at Comercio Partners described the Eurobond success as a clear vote of confidence in Nigeria’s economic direction despite global uncertainty. They noted that the fresh inflows will fortify external reserves, support fiscal operations, and enhance Nigeria’s ability to meet short-term external obligations.
However, they warned that additional external borrowing heightens FX exposure and increases the country’s foreign-currency debt servicing burden.
They added that the Central Bank’s push to unify the FX market and clear outstanding backlogs has temporarily boosted investor sentiment. Still, sustaining currency stability will be essential to maintaining momentum and ensuring lasting gains.
