Nigeria’s foreign exchange reserves have risen to $41 billion, a milestone last reached nearly four years ago. Analysts attribute the increase in reserves to improved pipeline safety and a recovery in crude oil production.
On Channels TV’s 10 a.m. news, data analyst Sunday Ogunsanwo explained how three related events contributed to the increase in the Babajide (CBN)’s total foreign exchange reserves. Central Bank of Nigeria”There are three related events. The first is improved pipeline safety due to improved pipeline safety. This is related to increased crude oil production. The increase in crude oil production is related to the increase in
total foreign exchange reserves. So, there are three related events. Improved pipeline safety is related to increased crude oil production,” Ogunsanwo said. Central Bank of NigeriaOgunsanwo further explained that Nigeria has been struggling to meet its production targets for most of the past four years. Between December 2020 and December 2024, crude oil exports fell to an average of less than 1.09 million barrels per day.
“Nigeria’s crude oil exports fell to less than 1.09 million barrels per day. As a result, we experienced a four-year period where crude oil exports were less than $1 million. But according to information we have received from the central government
, they say that since the beginning of this year, since January, crude oil exports have exceeded 1 million barrels per day,” said Ogunsanwo. Bank In addition to the increase in reserves, Ogunsanwo also pointed to the “related benefits” of increased crude oil production. He was referring to the strengthening of cooperation with other African oil-producing countries within the OPEC framework.
“We are also seeing independent and ancillary benefits from crude oil exports.
I am referring to the Chiefs of Staff of African OPEC members, including Algeria, Congo, Equatorial Guinea,
and Libya. They have stated that they will travel to Nigeria this week (starting tomorrow) to meet with the Chiefs of Staff of other African countries to seriously discuss cooperation. They have stated that their willingness to cooperate is very strong.” Gabon “In summary, the three things I mentioned have brought many benefits. Improved pipeline safety has led to increased crude oil production.” “Increased crude oil production has led to increased crude oil exports,” Ogunsanwo explained.
Background
Nigeria’s foreign exchange reserves
increased to US$41 billion on August 19, 2025, reaching a 44-month high. This is based on data published by the Central Bank of Nigeria (CBN) on its website. Data from the Central Bank of Nigeria show that reserves rebounded strongly in August, increasing by approximately $1.46 billion month-on-month, from $39.54 billion on August 1 to $41 billion on August 19.
- The real increase in reserves began in early August, with reserves crossing the $40 billion threshold on August 7, having fallen below $39.4 billion at the end of July. Central Bank of Nigeria Since then, the pace of reserve growth has accelerated, reaching $40.5 billion by August 12. This development follows months of gradual depletion and volatility, primarily due to significant pressure to repay external debt.
- What you should know
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