Nigeria’s Foreign reserves plummeted to $37.21 billion in June 2025

Data on Movement in Foreign Reserves from the Central Bank of Nigeria (CBN) indicates that Nigeria’s gross foreign reserves reached $37.21 billion at the conclusion of June 2025, representing the lowest level recorded thus far in 2025.

This figure signifies a 3.5% decrease month-on-month from $38.45 billion noted at the end of May 26 of the same year, and a 9.07% reduction from the year’s highest point of $40.92 billion observed on January 6. The reduction in foreign reserves highlights diminished foreign exchange inflows resulting from crude oil exports and capital repatriation by foreign investors.

Given that external reserves serve as essential buffers for exchange rate stability and economic resilience, their ongoing depletion jeopardizes Nigeria’s capacity to defend the Naira against fluctuations in the foreign exchange market. Additionally, the declining reserves present risks to macroeconomic stability by constraining the government’s ability to fulfill external obligations and maintain investor confidence. To counteract this trend, policy interventions are crucial.

These should encompass enhancing foreign exchange inflows by increasing non-oil export revenues and improving the overall business climate to attract and retain capital within the economy. Such initiatives are essential for protecting Nigeria’s external financial standing and ensuring sustainable economic growth.

Moreover, the government ought to enforce stringent fiscal discipline by prioritizing essential foreign exchange demand expenditures and reducing non-critical imports to preserve reserves and stabilize the Naira.