Nigeria’s FX Reserves Hit 5-Year High - Politics

Nigeria’s FX Reserves Hit 5-Year High - Politics - Nairaland

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Nigeria’s FX Reserves Hit 5-Year High by NaijaphiliaBlog(op): 12:53pm On Oct 18, 2025

Deputy Governor for Economic Policy at the Central Bank of Nigeria (CBN) Dr. Mohammad Sani Abdullahi has disclosed that the country’s foreign exchange (FX) reserves have now risen to a 5-year high of $43.4 billion.

He announced this while speaking at the Nigeria Investors Forum in Washington, D.C., capital of the United States of America.

The Nigeria Investors Forum held on the periphery of the IMF–World Bank annual meetings, during which Abdullahi led discussions on Nigeria’s economic outlook and progress made on reforms.

He said the reserves hit the 5-year record on 10 October 2025 in spite of the clearing of foreign exchange backlogs.

According to Abdullahi,

“Our gross reserves are at a 5-year high of $43.4 billion as of October 10, enough to cover 11 months of imports.

“This growth comes after clearing FX backlogs and improving liquidity across the market.”

He also noted that the naira has remained stable with the FX rate gap between official and parallel markets now below 3% versus 50%+ in 2022.

Abdullahi further added that Nigeria’s inflation has also declined to 18.02% the lowest level in the last 3 years, while capital inflows and remittances have strengthened Nigeria’s balance of payments.

https://x.com/NaijaphiliaBlog/status/1979515666513404025

14 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by Badb0y4lyf(m): 1:52pm On Oct 18, 2025

Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

6 Likes 2 Shares

Re: Nigeria’s FX Reserves Hit 5-Year High by givedemwotowoto: 8:24pm On Oct 18, 2025

APC congratulating itself for putting a single brick on a building it destroyed. No need to say more

10 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by HydraFeeds(m): 8:25pm On Oct 18, 2025

Badb0y4lyf:
Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

When Lagos was listed as the number one fastest growing tech city ,did you believe the statistics? Were you happy for the news ?

23 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by affable4(m): 8:26pm On Oct 18, 2025

Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

4 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by Mandate1: 8:27pm On Oct 18, 2025

Govt praising itself, while the citizens groan. Anywhere and time you see govt appointees, politicians praising the system as against the people, just know it's all lies.

The real measurement of success or progress in a nation is the welfare and wellbeing of the populace. Nigeria currently is a departure from this.

3 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by Lanruze: 8:28pm On Oct 18, 2025*

Dear Readers,

Please note that there is a maturing bill of $6B dollars obligation that will be due next month which the Government wants to borrow more money to re-place to continue the illusionary growth.

Secondly, is this the net FX reserves or the gross number ?

Thirdly the naira devaluation will see more diasporans bring in more FX to Nigeria as such the reserves will be on the rise till Year end Dec. 2025.

USA has commenced the devaluation of the Dollar against other foreign currencies to encourage Manufacturing whilst competing with China so there would be capital flight to Emerging Markets like Nigeria.

You see, Propaganda and story spinning to look Good will not do us any good in Nigeria. The Buhari Government left over $35B Gross whilst $31B was encumbered on forwards and loans.

5 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by ogolemati: 8:28pm On Oct 18, 2025

the one that came with empty bullion vans is smiling now.the way the CEO of bullion vans looks at the news

1 Like 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by Tareq1105: 8:29pm On Oct 18, 2025

MisterYeeser:
This a very good news. Nice one.

Obidients would soon call for your head.

11 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by Sensiblerealist(m): 8:33pm On Oct 18, 2025

Maturing bonds and bills go soon dabaru this statistics now. Na these money people Sabi all these their figure jare.
My own Na to have enough to sustain myself and family.

Re: Nigeria’s FX Reserves Hit 5-Year High by Lifestone(m): 8:37pm On Oct 18, 2025

Badb0y4lyf:
Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

But if na bad statistics, you go believe

10 Likes 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by Racoon(m): 8:51pm On Oct 18, 2025

Hehehe! Trust agbadorian balablu economic policies @your own risk. "Nah statistics we go chop?" Now they are banding incongruent statistics before a nation.

1 Like 1 Share

Re: Nigeria’s FX Reserves Hit 5-Year High by phransix2: 9:03pm On Oct 18, 2025

But why can't the common man in the street feel all these statistics?

Make Una stop all these propaganda

Re: Nigeria’s FX Reserves Hit 5-Year High by casualobserver: 9:12pm On Oct 18, 2025*

affable4:
Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

Forex reserves is how much money is available in the official banking system to finance our imports. If you want to buy a product from Amazon and you pay with your Nigerian debit card, you are spending from our reserves. If an importer wants to bring in goods the $, RMB or £ comes from our reserves.

Think of the reserves like your bank balance. You have a salary and you also also monthly expenses. Let’s say your salary is 100k a month and your expenditure is 90k a month and your bank balance is 1m. It means if you lose your job, (or if you are a member of a union that goes on strike and the your employer says no work no pay) you can go 11months until you are bankrupt and can’t feed yourself and your family. The bigger your bank balance the longer you can be out of work without a drop in your lifestyle. Same thing with forex reserves, every month we spend (I can’t remember the exact figure) I think it is $4b on imports. It means assuming all forex inflows stop we can only import for 10 months and there will be scarcity of imported items. Consider we import almost everything!

Let’s go back to the guy earning 100k who spends 90k a month with a bank balance of 1m. Let’s say he want to invest for the future of his family and buy a plot of land for 700k because he feels it will be worth 1.4m in 2 years. Somebody is willing to lend him the money if he can pay 10k a month for 6 years, what should he do? Should he use the money in his savings or borrow the money? Bear in mind if he uses the money in his bank AC, it means if he loses his job tomorrow he only has 3 months reserves before he is hungry and can’t pay children’s school fees.

The smart thing is to borrow the money, he still has his safety net of 10 months reserves (down from 11 due to 10k additional expense of repayments ) if he loses his job. He can maintain his lifestyle and invest for his family at the same time. In 2 years the land is worth 1.4m, if he decides to pay off the debt after only 2 years. He will have increased his wealth by 460k without the uncertainty that comes with with fear of losing his job and having no reserves.

Same thing with govt.

A bit more complex than this but that’s the general idea. Running a country is no different in principle from managing the finances of a household. You have income, you have expenses, you save for rainy day, you invest to build wealth and raise your standard of living, you borrow when it makes sense even if you have the money in your bank account. You don’t borrow to eat.

I hope it helps.

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Re: Nigeria’s FX Reserves Hit 5-Year High by casualobserver: 9:36pm On Oct 18, 2025

Sorry double post! Same as above

2 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by IDERAWOLE(m): 10:08pm On Oct 18, 2025

affable4:
Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

Thank you because you asked for explanation so that you can be in the know.

Simply stated, one would've thought why not take from your reserves and spend rather than borrowing again. Well, international economics is a bit different.

Reserves are observed by international partners and organisations as to how many months of importation a nation can handle.

While the concept of borrowing funds to undertake budgets is a better option because you have immediate access to funds to hit the ground running as long as your business plans are well thought out in terms of ROI.

There are social services that government undertake but also with the best intentions to create business environment for the private sectors can leverage upon for greater productivity.

Let's also know that great economies are private sector driven, this will ensure employment are increased and more people are well taken care of.

3 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by commoditiesnig(m): 10:13pm On Oct 18, 2025

Very welcome development

2 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by valuedammy(m): 10:27pm On Oct 18, 2025

affable4:
Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

I don't understand myself.

How will I have enough money in my savings account and I will still be borrowing money from another person to take care of myself and family.

Re: Nigeria’s FX Reserves Hit 5-Year High by grandstar(m): 11:30pm On Oct 18, 2025

Badb0y4lyf:
Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

Tinubu inherited a completely messed up economy.

Expecting to enter that list now may be a bit farfetched.

It might be in the fifth year beforte the country starts acheiving at least 5% economic growth rate.

4 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by grandstar(m): 11:31pm On Oct 18, 2025

affable4:
Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

The foreign reserves and borrowing have nothing in common.

2 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by grandstar(m): 11:39pm On Oct 18, 2025

Lanruze:
Dear Readers,

Please note that there is a maturing bill of $6B dollars obligation that will be due next month which the Government wants to borrow more money to re-place to continue the illusionary growth.

Secondly, is this the net FX reserves or the gross number ?

Thirdly the naira devaluation will see more diasporans bring in more FX to Nigeria as such the reserves will be on the rise till Year end Dec. 2025.

USA has commenced the devaluation of the Dollar against other foreign currencies to encourage Manufacturing whilst competing with China so there would be capital flight to Emerging Markets like Nigeria.

You see, Propaganda and story spinning to look Good will not do us any good in Nigeria. The Buhari Government left over $35B Gross whilst $31B was encumbered on forwards and loans.

You seem quite informed but biased.

Considering the mess Tinubu met, this is a vast improvement.

The country would still be borrowing for a while as going from spending 97% of government revenue on debt servicing in May 2023, to less than 20% can not be achieved overnight.

What is questionable is the borrowing for politically dubious projects whose prime objectives may be simply to win over polticians and also the hearts fo the masses to vote for the president.

5 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by grandstar(m): 11:43pm On Oct 18, 2025

valuedammy:
I don't understand myself.

How will I have enough money in my savings account and I will still be borrowing money from another person to take care of myself and family.

The foreign reserves isn't the government's personal cash. A sovereign fund on the other hand are assets belonging to the government.

The foreign reserves are used for facilitating foreign trade and activities.

4 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by wacuc0: 12:02am On Oct 19, 2025

Badb0y4lyf:
Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

Tell us what you have produced to add to the economy to grow as the fastest economy in the world.

3 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by NewHe: 12:08am On Oct 19, 2025

Badb0y4lyf:
Fake statistics, Na statistics we go chop.
Why can't we be in IMF list of fastest growing economy.

Is it everytime Nigeria must be on the list? FGE is not about Nigeria alone, check out the list and tell us which of them is upto Nigeria, SA, Egypt..!

2 Likes

Re: Nigeria’s FX Reserves Hit 5-Year High by Badb0y4lyf(m): 12:43pm On Oct 19, 2025

NewHe:
Is it everytime Nigeria must be on the list? FGE is not about Nigeria alone, check out the list and tell us which of them is upto Nigeria, SA, Egypt..!

How can you compare Nigeria 3rd world country with developing Nations like SA and Egypt, just 2 years into Tinubu administration and we are no more there it is a bad omen.

Re: Nigeria’s FX Reserves Hit 5-Year High by Badb0y4lyf(m): 12:55pm On Oct 19, 2025

wacuc0:
Tell us what you have produced to add to the economy to grow as the fastest economy in the world.

That is why we have different displine and ventures most I produce I can give service like doctor saving the life of a producer or police officer guiding the life of the the producer against thief besides shey with how Lagos state is demolishing business and different taxes plus no light and expensive cost of production with insecurity is where I will invest or produce.

Re: Nigeria’s FX Reserves Hit 5-Year High by NewHe: 1:47pm On Oct 19, 2025

Badb0y4lyf:
How can you compare Nigeria 3rd world country with developing Nations like SA and Egypt, just 2 years into Tinubu administration and we are no more there it is a bad omen.

Nigeria is a developing country like those nations mentioned!
Nigeria's HDI is the issue-
the Human Development Index (HDI) measures a country's well-being by combining factors like life expectancy, education, and income.
*Top 10 Developing Countries in Africa:*

1. *Mauritius*: With an HDI score of 0.802, Mauritius is considered to have "very high human development". It boasts a life expectancy of 75 years and a literacy rate of 91.3%.

2. *Seychelles*: Seychelles has an HDI score of 0.785, driven by its strong economy, mainly fueled by tourism.

3. *Algeria*: Algeria ranks third with an HDI score of 0.745 and has the highest life expectancy in Africa.

4. *Egypt*: Egypt has an HDI score of 0.754, reflecting its strides in education and healthcare provision.

5. *Tunisia*: Tunisia's HDI score is 0.746, indicating significant progress in reducing income inequality and investing in human capital.

6. *South Africa*: With an HDI score of 0.741, South Africa is one of the most developed countries in Africa.

7. *Gabon*: Gabon's HDI score is 0.733, driven by its strong economy.

8. *Botswana*: Botswana has an HDI score of 0.731, thanks to its consistent initiatives in improving education and poverty reduction.

9. *Libya*: Libya's HDI score is 0.721, indicating a balance of economic and social development.

10. *Morocco*: Morocco ranks tenth with an HDI score of 0.710, reflecting its efforts to enhance literacy rates and provide quality healthcare.

These countries are classified based on their HDI scores, which range from "very high human development" (0.8 or higher) to "low human development" (below 0.55)

Nigeria is a developing country with a growing economy, but it still faces significant challenges in human development. According to the United Nations Development Programme (UNDP), Nigeria's Human Development Index (HDI) score is 0.548, ranking 161st globally.

The country's HDI has shown a 22% increase in 19 years, but it remains low, categorizing Nigeria as having low human development.

Re: Nigeria’s FX Reserves Hit 5-Year High by Badb0y4lyf(m): 2:14pm On Oct 19, 2025

NewHe:
Nigeria is a developing country like those nations mentioned!
Nigeria's HDI is the issue-
the Human Development Index (HDI) measures a country's well-being by combining factors like life expectancy, education, and income.
*Top 10 Developing Countries in Africa:*

1. *Mauritius*: With an HDI score of 0.802, Mauritius is considered to have "very high human development". It boasts a life expectancy of 75 years and a literacy rate of 91.3%.

2. *Seychelles*: Seychelles has an HDI score of 0.785, driven by its strong economy, mainly fueled by tourism.

3. *Algeria*: Algeria ranks third with an HDI score of 0.745 and has the highest life expectancy in Africa.

4. *Egypt*: Egypt has an HDI score of 0.754, reflecting its strides in education and healthcare provision.

5. *Tunisia*: Tunisia's HDI score is 0.746, indicating significant progress in reducing income inequality and investing in human capital.

6. *South Africa*: With an HDI score of 0.741, South Africa is one of the most developed countries in Africa.

7. *Gabon*: Gabon's HDI score is 0.733, driven by its strong economy.

8. *Botswana*: Botswana has an HDI score of 0.731, thanks to its consistent initiatives in improving education and poverty reduction.

9. *Libya*: Libya's HDI score is 0.721, indicating a balance of economic and social development.

10. *Morocco*: Morocco ranks tenth with an HDI score of 0.710, reflecting its efforts to enhance literacy rates and provide quality healthcare.

These countries are classified based on their HDI scores, which range from "very high human development" (0.8 or higher) to "low human development" (below 0.55)

Nigeria is a developing country with a growing economy, but it still faces significant challenges in human development. According to the United Nations Development Programme (UNDP), Nigeria's Human Development Index (HDI) score is 0.548, ranking 161st globally.

The country's HDI has shown a 22% increase in 19 years, but it remains low, categorizing Nigeria as having low human development.

You just acknowledge that the nation is struggling and not improving with your statistics my problem is why are you praising Tinubu for a good job when you have just said things are not right with the human developing index. Why don't you call a spade a spade. I don't have problem with your boss Tinubu if he likes grab and run away with it but let him work not make things worst than he met it. How can buharis administion be far better than Tinubu owns it is deming on the Yoruba race buhari is the benchmark of failure.

Re: Nigeria’s FX Reserves Hit 5-Year High by casualobserver: 2:25pm On Oct 19, 2025

affable4:
Please I need to understand something as a layman , how do we claim that our reserves are high when we keep borrowing more than what is in the reserve?

Just explain to me if you know.

Very important thing I forgot to mention:

Our forex reserves includes gold, foreign exchange drawing rights and lines of credit that we have not used from foreign institutions such as IMF etc. it also includes things like gold as well as foreign bonds.

Drawing rights are like an overdraft/loan facility. If you have a bank cash balance of 700k but the bank has given you an overdraft facility of 300k if you need it. Technically you have 1m available for you to spend but 300k of that is an overdraft. Forex reserves includes cash and other financial assets we own and money we can borrow. So anyone who says we should use our reserves to pay our foreign debt really doesn’t understand what he is saying. If such a person understood what he is saying is we should borrow to pay back our debt, he wouldn’t make such a statement.

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