Nigeria’s external reserves have risen to $54.08 billion, reaching their highest level in nearly 18 years, according to data from the Central Bank of Nigeria (CBN). Economists have welcomed the increase, saying the stronger reserve position could help stabilise the naira, improve investor confidence and support the country’s external trade.
The latest figure was recorded on September 3, 2026, when the reserves reached $54.084 billion. This represents an increase of about $1.42 billion from the $52.66 billion recorded on August 19.
The reserve position is also significantly higher than it was at the beginning of the year. CBN data showed that reserves have increased by roughly $8.52 billion since January, representing growth of about 18.7 percent.
The latest level is particularly significant because Nigeria’s reserves have not been this high since December 2008, when they stood at about $54.21 billion. The increase therefore represents an important improvement in the country’s external financial position.
Economists believe the stronger reserves could provide additional support for the naira. Professor Sherifdeen Tella of Babcock University said the growth in reserves should be welcomed because it could improve the value of the domestic currency and strengthen the purchasing power of Nigerians.
He also linked part of the improvement to reforms in Nigeria’s foreign exchange market. According to him, the reforms have helped improve investor confidence because investors are increasingly confident that they can bring money into the country and repatriate their funds when necessary.
Professor Ndubisi Nwokoma of Caleb University also said the stronger reserves could help stabilise the currency and support international trade.
He explained that higher reserves provide Nigeria with a stronger buffer for meeting foreign exchange obligations and could help increase the country’s import cover. A stronger reserve position could also help reduce imported inflation, particularly because Nigeria imports many goods and raw materials.
The increase in reserves comes as the naira has also recorded some improvement in the official foreign exchange market. BusinessDay reported that the naira strengthened marginally to ₦1,320.56 per dollar on September 7, compared with ₦1,321.22 previously.
The improvement in reserves is also important for businesses. Companies that depend on foreign exchange to import machinery, raw materials and other products could benefit if greater dollar liquidity helps reduce pressure in the FX market.
However, economists have stressed that the increase in reserves alone will not solve all of Nigeria’s economic challenges. Professor Nwokoma called on the government to also address difficulties facing Nigerians at the grassroots, particularly by supporting agriculture and small businesses.
The stronger reserve position is nevertheless a positive development for Nigeria’s economy. Higher reserves give the CBN greater capacity to respond to foreign exchange pressures and external economic shocks.
For investors, the development could also strengthen confidence in Nigeria’s economy. A healthier external reserve position generally provides a country with greater financial protection and can make the economy more attractive to international investors.
The CBN will, however, need to maintain the factors supporting the reserve build-up, including foreign exchange inflows, oil earnings and other sources of foreign currency.
With reserves now above $54 billion, economists say the focus should be on ensuring that the improvement translates into greater economic stability, a more stable naira and better conditions for businesses and households.
