Nigeria’s external reserves have climbed to $54.08bn, reaching their highest level since 2008 and giving the country a stronger financial cushion as the naira continues to recover against the US dollar. The latest reserve build-up is also providing fresh support for foreign exchange liquidity and confidence in the currency market.
Data from the Central Bank of Nigeria (CBN) showed that the reserves rose to $54.084bn on September 3, representing a $1.42bn increase from $52.66bn recorded on August 19. Since the beginning of the year, Nigeria’s external reserves have gained $8.52bn, or 18.7 per cent, from $45.56bn on January 2. The latest figure is also slightly below the December 2008 peak of about $54.21bn.
The reserve accumulation has accelerated in recent weeks, with external assets rising steadily from $53.11bn on August 24 to $53.30bn on August 26, $53.51bn on August 28 and $53.81bn by August 31. Reserves then moved above $53.9bn on September 1 before reaching $53.99bn on September 2 and finally crossing the $54bn threshold the following day. Liquid reserves stood at $53.55bn, indicating that most of the funds are readily available to support foreign exchange and external payment needs.
The stronger reserve position has also outperformed the CBN’s full-year 2026 projection of $51.04bn by about $3.04bn. CBN Governor Olayemi Cardoso has linked the improvement to stronger foreign exchange inflows, including crude oil-related tax receipts and third-party inflows. The increase in dollar supply has coincided with improved liquidity in the FX market, helping the naira strengthen to N1,315/$ on Thursday before easing to N1,321/$ on Friday.
The recent performance marks a notable shift for the naira, which came under heavy pressure following the 2023 foreign exchange reforms. Improved dollar supply, tighter monetary conditions and measures by the CBN to deepen the FX market have helped ease some of the pressure on the currency. With Nigeria’s external reserves now above $54bn, attention will remain on whether sustained inflows can strengthen the naira further and provide a more stable outlook for businesses and consumers.
source: punch
