Nigeria’s external reserves have increased by $7.09 billion since the beginning of 2026, reaching $52.66 billion as of August 19, according to data from the Central Bank of Nigeria (CBN).
The latest figure represents a 15.6% increase from the $45.57 billion recorded on January 2, highlighting a significant improvement in the country’s external liquidity position.
The stronger reserve position provides the monetary authorities with a larger buffer to manage foreign exchange pressures and meet Nigeria’s international financial obligations.
However, the accumulation has not been consistent throughout the year.
Nigeria’s reserves fell by $855 million between April 1 and May 7, declining from $49.18 billion to $48.33 billion. The reserves subsequently rebounded, adding $4.33 billion over roughly three months.
The country’s reserve balance crossed the $50 billion mark in early June and reached $51.06 billion by June 19. It subsequently moved above $52 billion in July.
The upward trend continued in August. Reserves stood at $51.94 billion on August 3 before increasing by approximately $715 million to $52.66 billion by August 19.
The improvement in Nigeria’s external position has coincided with more stable conditions in the foreign exchange market. The naira traded around N1,346.90 per dollar at the Nigerian Foreign Exchange Market on August 21.
Analysts attributed the reserve accumulation to stronger dollar earnings and improved capital inflows, which have supported Nigeria’s external liquidity position.
Meanwhile, the CBN maintained its tight monetary policy stance at its July meeting, leaving the Monetary Policy Rate unchanged at 26.5%.
The Monetary Policy Committee also retained the Cash Reserve Ratio at 45% for commercial banks and 16% for merchant banks.
The Standing Facilities Corridor was maintained at +50/-450 basis points around the MPR, while the CRR on non-Treasury Single Account public sector deposits remained at 75%.
Economist Henry Ademola said the continued rise in reserves provides Nigeria with a stronger external cushion, although the sustainability of the buildup will depend largely on oil revenues, capital inflows and developments in the foreign exchange market.
