…Says $2.34bn spent on food imports in 2025
Nigeria’s external reserves have continued their upward trajectory, rising to $49.34 billion as the naira remained largely stable against the United States dollar, reinforcing investor confidence in the country’s foreign exchange (forex) market reforms and external sector outlook, according to the latest data released by the Central Bank of Nigeria (CBN).
This is just as the apex bank revealed that Nigeria spent approximately $2.34 billion on food imports in 2025, underscoring the country’s continued dependence on foreign food supplies despite a modest decline in forex demand for food imports.
The latest report released by the CBN showed that the nation’s gross official foreign reserves increased by $359.84 million week-on-week, climbing from $48.98 billion recorded at the close of the previous week to $49.34 billion as of May 26, 2026.
The sustained growth in reserves reflected improving external liquidity conditions and underscored the gains from recent efforts by monetary authorities to strengthen foreign exchange market stability.
Analysts attributed the increase largely to steady inflows from crude oil exports, supported by relatively stable production levels and improved earnings from Nigeria’s oil sector. The development, they noted, has continued to bolster the country’s external buffers and enhance its ability to meet international obligations.
The latest increase in reserves comes at a time when the CBN is intensifying reforms aimed at deepening liquidity in the foreign exchange market, narrowing exchange rate distortions and improving investor confidence. Market operators said the growing reserves position provides a stronger cushion against external shocks while supporting the apex bank’s capacity to manage market pressures and sustain confidence in the Naira.
At the foreign exchange market, the domestic currency recorded a modest gain against the dollar during the review period. Data from the Nigerian Foreign Exchange Market (NFEM) indicated that the Naira appreciated by 0.16% week-on-week, strengthening by ₦2.20 to close at ₦1,373.25 per dollar compared with ₦1,375.45 per dollar recorded a week earlier. The currency also traded within a relatively narrow band against the dollar, between ₦1,372 and ₦1,377, suggesting reduced volatility and improved market equilibrium.
The stability observed in the foreign exchange market has been linked to increased dollar supply, enhanced market transparency, and sustained interventions to support orderly trading conditions. Analysts said the combination of rising reserves and relative exchange rate stability signals growing resilience in Nigeria’s external sector, although they cautioned that challenges remain.
With reserves approaching the $50 billion mark and exchange rate volatility moderating, analysts believe Nigeria’s external sector is showing signs of gradual strengthening, offering a measure of reassurance to investors and businesses navigating an increasingly uncertain global economic landscape.
Meanwhile, Nigeria spent approximately $2.34 billion on food imports in 2025, according to the latest data released by the CBN. Figures contained in the apex bank’s Quarterly Statistical Bulletin, quoted yesterday, showed that food import expenditure fell by 7.37%, from the $2.53 billion recorded in 2024, suggesting a moderation in demand for imported food products amid efforts to boost domestic agricultural production and improve food security.
The data, however, revealed that food imports continued to exert significant pressure on the nation’s foreign exchange resources, with an average monthly utilisation of $195.28 million throughout the year.
