Nigeria’s gross external reserves have risen to $55.25 billion, reaching their highest level in 18 years, according to figures released by the Central Bank of Nigeria (CBN).
The reserves stood at the new level as of September 18, 2026, and provide approximately 11.3 months of import cover for goods and services, according to the communiqué from the CBN’s 307th Monetary Policy Committee meeting.
The increase comes alongside improvements in Nigeria’s current account and balance of payments, as well as what the CBN described as reduced pressure in the foreign exchange market.
Reserves reach $55.25 billion
The CBN said gross external reserves had reached $55.25 billion by September 18, representing the highest level recorded in 18 years.
The latest figure follows a steady increase during September. CBN data showed reserves at $54.08 billion on September 3 and $54.61 billion on September 14 before reaching the latest level.
CBN Governor Olayemi Cardoso said the rebuilding of the country’s external buffers had been supported by the central bank’s approach to the foreign exchange market and increased diaspora contributions.
The reserve figure is important because foreign exchange reserves provide a buffer that can help a country meet external payment obligations and manage periods of pressure in its foreign exchange market.
Current account surplus rises
The improvement in reserves has coincided with a stronger external account position.
According to the CBN, Nigeria’s current account surplus increased from $4.49 billion in the first quarter of 2026 to $7.54 billion in the second quarter, representing a 67.92 percent increase.
The country’s overall balance of payments surplus also increased from $2.38 billion in the first quarter to $3.51 billion in the second quarter.
The figures indicate that Nigeria recorded stronger net external inflows during the second quarter, although the reserve increase itself reflects a combination of factors rather than a single source.
Diaspora remittances contribute to foreign exchange inflows
Cardoso also pointed to stronger diaspora remittances as one factor supporting Nigeria’s external position.
According to reports of his remarks following the MPC meeting, monthly remittance inflows had increased substantially from levels of about $200 million when the CBN intensified efforts to strengthen formal remittance channels.
The governor said monthly inflows were approaching $1 billion by July, bringing the central bank closer to its stated target.
Remittances are an important source of foreign exchange for Nigeria because funds sent by Nigerians abroad can increase dollar inflows through formal financial channels.
The CBN has also sought to improve the transparency and efficiency of remittance transactions by changing requirements affecting banks and international money transfer operators.
Foreign exchange pressures ease
The CBN said pressure in the foreign exchange market had receded significantly as the country’s external buffers improved.
The central bank linked the stronger external position with greater stability in the foreign exchange market. Cardoso also highlighted changes to the operation of Nigeria’s foreign exchange market, including efforts to reduce distortions associated with multiple exchange rates.
However, the reserve figure should not be interpreted as meaning that all foreign exchange challenges have disappeared.
The CBN’s own latest monetary policy communiqué continues to identify external risks, including geopolitical tensions and other developments that could affect inflation and economic conditions.
Reserves provide more than 11 months of import cover
At $55.25 billion, Nigeria’s reserves are estimated by the CBN to cover approximately 11.3 months of imports of goods and services.
Import cover is one way of assessing the strength of a country’s external liquidity position. A larger reserve buffer can provide greater capacity to meet foreign currency obligations during periods when external inflows weaken.
The CBN’s latest figure therefore represents a substantial change from the external reserve position seen during earlier periods of severe foreign exchange pressure.
Punch reported on September 18 that reserves had already gained $12.76 billion over the preceding year, rising from $41.84 billion on September 15, 2025, to $54.61 billion on September 14, 2026.
Reserve milestone comes alongside lower interest rates
The reserve announcement was made at the same MPC meeting where the CBN reduced the Monetary Policy Rate from 26.5 percent to 23 percent.
The 350-basis-point reduction was described by the central bank as an operational reset designed to improve monetary policy transmission and align the policy rate more closely with prevailing financial market conditions.
The MPC also retained the Cash Reserve Requirement at 45 percent for deposit money banks, 16 percent for merchant banks and 75 percent for public sector deposits held outside the Treasury Single Account.
The CBN said the policy decisions followed improvements in several economic indicators, including moderating inflation, stronger second-quarter economic growth and the improvement in external reserves.
What the reserve increase means for Nigeria
The rise in foreign reserves strengthens Nigeria’s external liquidity position and gives the country a larger foreign currency buffer.
It also comes alongside a $7.54 billion current account surplus and a $3.51 billion balance of payments surplus in the second quarter, indicating a stronger external position than in the first quarter.
For businesses and investors, the development may be relevant to foreign exchange conditions because a stronger reserve position can improve the central bank’s capacity to respond to periods of market pressure. However, reserve accumulation alone does not determine the future direction of the naira, inflation or foreign exchange rates.
The CBN said it would continue to monitor economic and financial developments as it assesses the effectiveness of its monetary policy framework.
Nigeria’s next Monetary Policy Committee meeting is scheduled for November 23 and 24, 2026.
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