Nigeria foreign exchange reserves reach 18-year high of $54 billion

foreign exchange reserves naira appreciation crude oil revenue monetary policy Central Bank of Nigeria

Nigeria’s external foreign exchange reserves have reached $54.08 billion as of September 3, marking the highest level in nearly 18 years. This figure represents an 18.7 percent increase since the beginning of the year, rising from $45.56 billion on January 2. The current reserves exceed the Central Bank of Nigeria’s (CBN) end-of-2026 projection by over $3 billion.

CBN Governor Olayemi Cardoso attributed the growth to increased foreign exchange inflows, including third-party inflows and receipts from crude oil-related taxes. While the reserves have climbed, the naira has seen only gradual strengthening, trading at approximately N1,315 to N1,324 per dollar at the official market.

Economic experts note a disconnect between rising oil revenues from the Nigerian National Petroleum Company Limited (NNPC Ltd) and the exchange rate. Despite improved liquidity, persistent demand for foreign exchange, import requirements, and broader monetary policy factors have prevented the naira from reaching more populist targets, such as N1,000 per dollar.