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Nigeria’s external reserves have risen $7.09 billion since the beginning of 2026, reaching $52.66 billion by August 19.
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The buildup has strengthened the country’s external liquidity buffer, although reserves briefly declined by $855 million between April and May.
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Analysts say sustaining the gains will depend largely on oil earnings, capital inflows and continued stability in the foreign exchange market.
August 25, (THEWILL) — Nigeria’s external reserves have gained $7.09 billion since the start of 2026, rising to $52.66 billion by August 19, according to data from the Central Bank of Nigeria.
The latest balance represents a 15.6 percent increase from the $45.57 billion recorded on January 2, strengthening Nigeria’s external liquidity position and providing the Central Bank of Nigeria (CBN) with a larger buffer to manage foreign exchange pressures and meet international obligations.
The increase also places reserves well above the $50 billion mark crossed earlier in the year.
Reserves recover after mid-year decline
The accumulation has not been uninterrupted.
CBN data showed that reserves declined by $855 million between April 1 and May 7, falling from $49.18 billion to $48.33 billion.
The decline was subsequently reversed, with reserves adding about $4.33 billion over the following three months.
Nigeria’s reserve balance crossed $50 billion in early June and reached $51.06 billion by June 19 before moving above $52 billion in July.
The upward trend continued into August. Reserves increased from $51.94 billion on August 3 to $52.66 billion by August 19, representing an increase of about $715 million in just over two weeks.
The stronger reserve position has coincided with improved conditions in the foreign exchange market, with the naira trading around ₦1,346.90/$ at the Nigerian Foreign Exchange Market on August 21.
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CBN maintains tight monetary stance
At its July meeting, the Monetary Policy Committee retained the Monetary Policy Rate at 26.5 percent.
The committee also kept the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks, while retaining the Standing Facilities Corridor at +50/-450 basis points around the MPR.
The CRR on non-TSA public sector deposits was also maintained at 75 percent.
Analysts have linked the reserve accumulation to stronger dollar earnings and improved capital inflows. However, the trend’s durability depends on the performance of key external sources of foreign exchange.
“The continued rise in reserves gives Nigeria a stronger external cushion, but the sustainability of the buildup will remain closely tied to oil revenues, capital inflows and the broader performance of the foreign exchange market”, said Lagos-based economist Henry Ademola.
The reserve buildup gives policymakers greater external liquidity, but maintaining the momentum will require sustained foreign exchange inflows and continued stability in the naira market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
