Nigeria’s external reserves have climbed above $47 billion for the first time in about eight years, reflecting renewed strength in the country’s external position and reinforcing confidence in the Central Bank of Nigeria’s (CBN) medium-term outlook.
Latest data tracked by Nairametrics show that gross external reserves rose to $47.025 billion, the highest level recorded since August 3, 2018, when reserves stood at $47.01 billion.
The development highlights a steady upward trajectory that began in the final weeks of 2025 and has extended into early 2026, raising expectations about the CBN’s ability to meet its reserve target for the year.
What the data is saying
Nigeria’s external reserves closed 2025 at approximately $45.5 billion, up from about $40.8 billion at the start of the year.
This represents a strong annual accretion of nearly $4.7 billion, reflecting improved inflows and tighter foreign exchange management.
- In January, Nigeria’s external reserves crossed the $46 billion mark for the first time in about eight years.
- Reserves opened January 2026 at $45.565 billion and closed the month at $46.279 billion, indicating a gain of over $700 million within the month.
- Within the first 22 days of January 2026 alone, reserves increased by about $509 million, underscoring sustained inflows and improved FX liquidity conditions.
- In December 2025, reserves rose from approximately $44.8 billion to $45 billion, marking a six-year high at the time.
- The consistent rise since December 19, 2025, signals that Nigeria’s external buffers are being rebuilt at a measured but steady pace.
The sustained build-up has now pushed reserves beyond the psychologically significant $47 billion threshold, their highest level in nearly eight years.
More Insights
While a detailed breakdown of recent inflows has yet to be disclosed, analysts attribute the increase to a combination of oil-related and policy-driven factors.
The improvement suggests that recent reforms in the foreign exchange market are gradually yielding measurable results.
- Improved crude oil production and stronger export earnings have boosted foreign exchange receipts.
- Enhanced FX reforms and greater market transparency have supported autonomous inflows.
- Renewed foreign investor confidence has contributed to portfolio inflows.
- Multilateral, bilateral funding inflows and stronger remittance flows have further supported reserve accretion.
These factors collectively point to a more stable external sector compared to previous years when reserve levels were under pressure.
What you should know
The current reserve level brings the CBN’s medium-term projection of $51 billion in reserves by the end of 2026 increasingly into focus.
The apex bank had set this target as part of its broader macroeconomic stabilisation strategy.
- Reserves are now at their highest level since August 2018, when they stood at $47.01 billion.
- The $45 billion mark crossed in December 2025 was previously described as a six-year high.
- The steady climb since late December 2025 indicates sustained momentum entering 2026.
If the present pace of accumulation is sustained, the CBN may achieve its $51 billion target within the projected timeline, strengthening its capacity to manage exchange rate volatility and meet external obligations.
