By Abiola Olawale
Nigeria’s foreign exchange (FX) reserves have reached a 44-month high, climbing to $41 billion as of August 19, 2025, according to data from the Central Bank of Nigeria (CBN).
According to recent data from the CBN, this milestone reflects a steady accumulation driven by strategic economic reforms, increased oil production, and enhanced foreign currency inflows.
However, the figure remains lower than the $67 billion peak achieved during former President Olusegun Obasanjo’s administration, sparking discussions about Nigeria’s economic trajectory.
Meanwhile, the breakdown of CBN’s data showed that Nigeria’s FX reserves rose from $37.195 billion on July 1, 2025, to $40.159 billion by August 7, and now to $41 billion by August 19
The data also revealed that on average, the country’s reserves have grown.
Nigeria’s reserves increased from $40.88 billion at the start of the year to $41.00 billion, gaining about $124 million or 0.30%. Most of this growth occurred in the past five weeks after a subdued first half of 2025.
Between January and June, reserves largely fluctuated within the $37 billion to $39 billion range, reflecting FX market interventions, oil price swings, and debt service obligations.
For instance, reserves dipped to $37.28 billion in early July before the recent rebound.
The recent improvement is significant given the prolonged drawdowns that followed through 2022 and 2023, when reserves struggled to hold above $38 billion.
However, despite the reserve growth, the current reserve level pales in comparison to the $67 billion amassed during Obasanjo’s tenure (1999–2007).
This is coming against the backdrop of criticism by experts who reveal that successive APC-led governments squandered a hefty foreign reserve of $ 45 billion and an additional $22.6 billion left behind by the administration of former President Olusegun Obasanjo in 2007.
Additionally, they wonder what happened to the reported $ 34.49 billion foreign reserves in 2015, as at the time former President Goodluck Jonathan left office.
Recall also that in a recent interview, Obasanjo revealed that he inherited reserves of $3.7 billion and a $36 billion debt burden in 1999.
He said his administration, through aggressive debt relief advocacy and prudent fiscal management, reduced Nigeria’s debt to $3.5 billion while growing reserves to $45 billion, with an additional $25 billion saved in the Excess Crude Account (ECA), totaling $67 billion. Obasanjo also created the Excess Crude Account, as a novel initiative.
Obasanjo also criticized subsequent administrations for fiscal mismanagement, noting that Nigeria’s debt had surged to N134.3 trillion by Q2 2024, while the ECA dwindled.
He attributed the depletion of reserves and rising debt to poor leadership, corruption, and a lack of accountability.
