CBN Reports 772% Surge in Nigeria’s Net Foreign Reserves to $34.8 Billion, Crediting Transparent Policy Reforms

CBN Governor Olayemi Cardoso reports a massive 772% rise in Nigeria's net foreign reserves, reaching $34.8 billion as economic reforms take hold.

By: AXL Media

Published: Mar 3, 2026, 7:06 AM EST

Source: The information in this article was sourced from Business Hallmark

A Dramatic Turnaround in External Buffers

The Central Bank of Nigeria (CBN) has released new data showing a historic recovery in the nation's net foreign exchange reserves. According to Governor Olayemi Cardoso, the net reserves which represent the liquid assets available after accounting for short-term liabilities climbed from $3.99 billion at the end of 2023 to $34.80 billion as of December 2025. This 772% increase is being hailed by the apex bank as a validation of the aggressive macroeconomic reforms initiated under the current administration. Cardoso noted that this growth reflects a "fundamental improvement" not just in the quantity of the reserves, but in their overall quality and accessibility.

Comparing Gross vs. Net Reserves

While gross external reserves provide a headline figure for total foreign assets, the net reserve figure is often considered a more accurate measure of a country's actual financial resilience. Cardoso highlighted that the 2025 net reserve position of $34.80 billion actually surpassed the gross reserves recorded at the end of 2023, which stood at $33.22 billion. Furthermore, as of February 16, 2026, the gross external reserves reached $50.45 billion. The narrowing gap between gross and net figures suggests that the CBN has successfully managed and reduced the significant foreign exchange backlogs and short-term swaps that previously weighed down the nation's balance sheet.

Drivers of Growth: Transparency and Confidence

Governor Cardoso attributed the surge in reserves to increased transparency and credibility in Nigeria’s foreign exchange management. By unifying exchange rates and moving toward a more market-determined system, the CBN has boosted investor confidence, leading to stronger foreign exchange (FX) inflows. The Governor emphasized that improved reserve management practices have been aimed at three core pillars: preserving capital, ensuring liquidity, and supporting long-term sustainability. These efforts have allowed Nigeria to attract significant portfolio investment while simultaneously supporting the local currency’s stability.