Nigeria’s gross external reserves climbed to $55.25 billion as of September 18, 2026, the highest level recorded in 18 years, strengthening the country’s capacity to withstand external shocks and meet foreign payment obligations.
The Central Bank of Nigeria (CBN) disclosed the reserve position in the communiqué issued following the 307th meeting of its Monetary Policy Committee (MPC), held on September 21 and 22, 2026.
According to the apex bank, the $55.25 billion reserve stock is sufficient to finance approximately 11.3 months of imports of goods and services, providing Nigeria with a substantial external buffer.
The MPC cited the robust reserve position alongside improving external-sector fundamentals as evidence of increasing resilience in the Nigerian economy.
Nigeria’s external accounts also strengthened considerably during the second quarter of the year.
The country’s balance of payments surplus increased to $3.51 billion in the second quarter of 2026 from $2.38 billion in the first quarter, representing an increase of approximately 47.5 percent.
Similarly, the current account surplus jumped 67.92 percent to $7.54 billion, compared with $4.49 billion in the preceding quarter.
The combination of stronger reserves, an expanding current account surplus and an improved balance of payments position provided additional support to Nigeria’s external sector during the period.
The CBN also linked the improving macroeconomic environment to sustained exchange-rate stability, moderating inflation and strengthening investor confidence.
Headline inflation slowed to 15.39 percent in August from 15.43 percent in July, marking the third consecutive month of decline, according to the MPC.
Food inflation moderated to 19.57 percent from 20.31 percent, while core inflation declined to 13.29 percent from 14.97 percent.
The 12-month moving average headline inflation rate also declined to 16.30 percent in August from 16.89 percent in July, extending its moderation to 20 consecutive months.
Economic activity strengthened alongside the improvement in Nigeria’s external position.
Real Gross Domestic Product expanded by 4.43 percent in the second quarter of 2026, up from 3.89 percent in the first quarter.
Non-oil economic growth accelerated to 4.31 percent from 3.94 percent, supported by increased activity in information and communications technology, crop production, real estate, livestock, financial services and trade.
The oil sector expanded by 7.31 percent, compared with 2.57 percent in the preceding quarter, following increased production and investment.
The Composite Purchasing Managers’ Index also increased to 52.7 points in August from 51.1 points in July, indicating further expansion in business activity.
The stronger reserve position formed part of the macroeconomic conditions considered by the MPC before resetting the Monetary Policy Rate to 23 percent and recalibrating the Standing Facilities Corridor to +50/-300 basis points around the benchmark rate.
The CBN expects domestic economic growth to remain resilient through the remainder of 2026, supported by improving crude oil production, agriculture and broader business activity.
However, the MPC identified prolonged geopolitical tensions in the Middle East and election-related spending as potential upside risks to domestic prices.
At $55.25 billion, Nigeria’s external reserves are now at their highest level in 18 years, with the CBN estimating that the stock can cover approximately 11.3 months of the country’s imports of goods and services.
