The Central Bank of Nigeria has revealed that Nigeria’s foreign reserves have increased to $40.92 billion as at January 6, 2025.

The latest reserves indicate a $606.23 million increase in one month compared to the $40.31 billion recorded as of December 6, 2024.

The successful Eurobond issuance and the strategic management of foreign exchange inflows have also helped improve the reserves, Punch reports.

Additionally, the rise in oil prices in the international market has been a boon for foreign reserves. Oil prices are currently at $77.79 per barrel.

Bonny Light, Nigeria's oil blend, is among the highest-priced at $78.62 per barrel as of January 8, 2024.

Rising oil prices are expected to increase the foreign exchange earnings of oil-producing countries like Nigeria.

This, in turn, leads to the accumulation of foreign reserves, an increase in the supply of foreign exchange, and a moderation of demand pressure in the foreign exchange market.

Why is external reserves growth important?

Higher reserves improve Nigeria’s ability to meet external payment obligations, such as debt servicing and import financing, providing a buffer against economic shocks.

FX reserves also helped the CBN provide immediate funds to intervene in the foreign exchange market and stabilize the domestic currency.

Here is a monthly balance of Nigeria's reserves in 2024

January: $33.35bn

February: $33.72bn

March: $34.26bn

April: $32.25bn

May: $32.69bn

June: $34.19bn

July: $36.80bn

August: $36.83bn

September: $36.31bn

October: $39.79bn

November: $40.23bn

December: $40.827bn