Nigeria’s gross external reserves have climbed to $51.035 billion, putting the Central Bank of Nigeria (CBN) within reach of its 2026 year-end target of $51.04 billion. The current reserve level is the highest recorded in about 17 years, reflecting stronger foreign exchange inflows and improved market conditions.
Data from the CBN show that the reserves need only an additional $4.45 million to achieve the December 31, 2026 target. The reserves last exceeded the $51 billion mark in January 2009, while the liquid component currently stands at $50.36 billion, with $671.7 million classified as blocked reserves.
The CBN had projected higher oil earnings, foreign exchange reforms and increased capital inflows as key drivers of reserve growth in 2026.
Reserves rose steadily throughout June, moving from $49.8 billion at the start of the month to over $50 billion by June 5 before reaching their present level.
Analysts at Cordros Capital said the strong reserve position should help maintain stability in the foreign exchange market. They expect the naira to remain broadly stable, supported by portfolio inflows, investor confidence and a healthy current account balance, although geopolitical tensions could still trigger capital outflows.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, also expressed optimism about the outlook for external reserves, arguing that ongoing reforms in the foreign exchange market and the removal of fuel subsidies have strengthened Nigeria’s external position.
CBN Governor Olayemi Cardoso attributed the improved reserves to reforms that restored investor confidence, including the clearance of more than $7 billion in verified foreign exchange backlogs inherited by the current administration. He said honouring those obligations was necessary to rebuild Nigeria’s credibility among investors.
Economists believe the stronger reserve buffer enhances the CBN’s ability to stabilise the exchange rate, meet external obligations and reinforce confidence in Nigeria’s macroeconomic environment, making the outlook for the foreign exchange market largely positive.
