The Central Bank of Nigeria (CBN) disclosed this on Tuesday in a Frequently Asked Questions published on its official website.
According to the apex bank, the increase reflected a stronger external sector resilience and improved foreign exchange inflows.
The gross external reserves also rose to $43.05 billion as of September 11, providing 8.28 months of import cover.
To counter excess liquidity from public sector accounts outside the Treasury Single Account (TSA), the MPC also introduced a 75% CRR on non-TSA public sector deposits.It attributed the improvement to sustained exchange rate stability, tighter monetary policy, and a moderation in petroleum product prices, all of which have contributed to a more favorable balance of payments outlook.
According to the latest data from the CBN, the country’s external reserve has increased by over $692 million in 18 days. It also shows that the reserve has been on an upward swing since the 14th of July 2025.
The closest the external reserve has gotten to the present figure was on September 27, 2019, when it hit $41.992 billion.
However, Nigeria’s external reserves surpassed the $42 billion mark as of Thursday, September 25, 2025, the highest in over six years.The increase was also confirmed by President Bola Tinubu in his Independence Day address to Nigerians on October 1.
The CBN’s FAQ also explained why the Monetary Policy Committee (MPC) recently reduced the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45%.The CBN emphasised its commitment to balancing inflation control with support for the real economy, particularly MSMEs.
The bank reiterated its role as a lender of last resort, providing short-term liquidity support to commercial banks through its Standing Lending Facility.
This ensures that banks can meet customer obligations while maintaining systemic stability.
The CBN also provided clarity on its decision to reduce the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%.
The move was announced at the MPC meeting held last week.In addition to the rate cut, the CBN announced a revision to the Standing Facilities corridor, narrowing it from +500/-100 basis points to a symmetric +250/-250 basis points around the MPR.
This adjustment marks a shift from an asymmetric to a symmetric corridor, aimed at improving liquidity management and reducing volatility in overnight interest rates.
The central bank emphasised that the corridor adjustment is designed to enhance interbank market efficiency and strengthen monetary policy transmission.
These measures, the CBN said, were carefully balanced to sustain ongoing disinflation efforts while ensuring the banking sector has adequate liquidity to support credit expansion and economic growth.