Nigeria’s foreign reserves have climbed above $46 billion, marking the country’s highest level since 2018 and signalling renewed confidence in the foreign exchange market.
The Central Bank of Nigeria (CBN) Governor Yemi Cardoso announced the milestone at the Monetary Policy Department’s 20th anniversary colloquium in Abuja, saying the reserves can now cover over 10 months of imports, reflecting improved external liquidity.
Cardoso described the development as a turning point for Nigeria’s macroeconomic stability, noting that the new reserve level strengthens the naira’s defence and supports ongoing FX market reforms. He said, “The nation’s foreign reserve has risen to over $46 billion… it is the first time the country reached such a level since 2018 and it could cover over 10 months of imports.”
Implications for the Economy
The rise in reserves comes at a period of tight monetary conditions, as the CBN pushes policies aimed at reducing inflation, stabilising the naira, and rebuilding investor trust. Economists say the stronger reserve position could help reduce currency volatility, improve Nigeria’s credit outlook, and attract more portfolio inflows into the fixed-income market.
Higher reserves also offer a buffer against external shocks, supporting oil-driven revenue flows and providing room for the government to manage FX demand pressures. Analysts note that the import cover now exceeds the commonly recommended global threshold of three months, placing Nigeria in a stronger position ahead of 2026 budget planning.
Market Outlook
The boost in reserves is expected to influence investor sentiment, particularly in the Eurobond and equities markets, where foreign investors watch Nigeria’s external buffers closely. With the CBN sticking to its reform agenda, markets will be looking to see if the momentum can be sustained in the coming quarters.