Nigeria’s foreign exchange (Forex) reserves have hit a 14-month high, climbing to $40.159 billion as of August 7, 2025, from $37.195 billion barely a month earlier — a growth of nearly $3 billion in just over five weeks. The Presidency attributes this significant leap to President Bola Ahmed Tinubu’s bold economic reform agenda.
According to data released by the Central Bank of Nigeria (CBN), the country’s reserves have maintained a steady upward trajectory since early July. Presidential aide Bayo Onanuga revealed via his official X (formerly Twitter) account that when President Tinubu assumed office on May 29, 2023, Nigeria’s reserves stood at $32 billion, much of it encumbered by outstanding obligations.
“Surely, the management of the economy is in good hands, as positive indicators abound in other sectors,” Onanuga said.
Senior Presidential aide O’tega Ogra, who oversees digital strategy and engagement, stressed that economic reforms are rarely painless but necessary for long-term stability. Drawing on historical parallels, Ogra warned against calls from some political figures to slow down or reverse ongoing reforms, such as subsidy removal and currency liberalisation.
Citing Bulgaria’s failed 1990s experiment — where partial reforms, delayed subsidy removal, and an unsustainable currency peg led to hyperinflation exceeding 2,000% — Ogra said Nigeria is taking a different path.
From day one, President Tinubu implemented three major steps:
Petrol Subsidy Removal – Eliminating a subsidy that drained over ₦4 trillion annually from government coffers.
Currency Liberalisation – Allowing the naira to float freely, aligning with market realities.
Fiscal Discipline and FX Backlog Clearance – Settling over $7 billion in outstanding foreign exchange obligations, restoring credibility with international partners.
The Presidency says these reforms have already yielded tangible results:
Nigeria was removed from IATA’s blacklist, enabling smooth airline repatriation of funds.
The country attracted $5.6 billion in foreign inflows in late 2024 — more than the combined total for the previous two years.
Non-oil tax revenue has grown by over 20%, reducing dependence on crude oil sales.
Economists note that the forex reserves milestone signals improved investor confidence, fiscal responsibility, and a shift towards a more diversified economy.
Despite the progress, Ogra cautioned that “political comfort” could derail the gains if reforms are slowed for short-term relief.
“The choice is simple: pain now with a recovery we can see, or comfort now with a collapse we cannot control. Nigeria must hold the line — keep subsidy savings transparent, keep the currency market-driven, and maintain tight monetary policy until inflation falls within a credible band.”
He argued that Nigeria is on track to write “the modern African recovery story the world will study” if it stays disciplined.
Nigeria’s reserve boost comes amid a global shift where emerging markets are fortifying their foreign reserves to cushion against currency shocks, capital flight, and global commodity price swings. Analysts believe Nigeria’s case could inspire other African economies grappling with similar fiscal and monetary challenges.