By Peter Omopo
Nigeria’s external reserves have risen to $53.2 billion, marking their highest level in nearly 18 years as stronger crude oil earnings and increased foreign exchange inflows continue to strengthen the country’s external position.
Data from the Central Bank of Nigeria (CBN) showed that the reserves stood at $53.2 billion as of August 26, 2026, exceeding the apex bank’s projected year end target of $51.04 billion.
The latest figure is also estimated to provide more than 12 months of import cover, strengthening Nigeria’s capacity to meet its external obligations while providing additional support for foreign exchange liquidity and the stability of the naira.
Further analysis of the CBN data showed that the liquid component of the reserves stood at approximately $52.7 billion.
The continued accumulation of foreign reserves has been attributed to stronger foreign exchange inflows and improving conditions in the country’s external sector.
Nigeria has also benefited from higher international crude oil prices. Brent crude traded at about $87 per barrel on Wednesday, significantly above the $64.85 benchmark price adopted in the 2026 federal budget.
The higher crude price is expected to improve government oil revenues and increase foreign exchange earnings, creating additional room for reserve accumulation and potentially supporting naira stability.
The CBN had previously identified stronger oil earnings, ongoing foreign exchange market reforms and improved external capital inflows as key factors expected to drive reserve growth in 2026.
The latest increase extends a steady upward trend recorded over recent months. CBN data showed that Nigeria’s reserves opened June at $49.80 billion before crossing the $50 billion mark on June 5, when they reached $50.12 billion.
The reserves subsequently climbed to $50.81 billion by June 15 and reached approximately $51.9 billion on July 31, before rising further to the current level.
The sustained growth in external reserves strengthens the CBN’s capacity to provide liquidity to the foreign exchange market, respond to external pressures and meet Nigeria’s international financial obligations.
The development also signals an improvement in Nigeria’s external liquidity position, although the sustainability of the reserve build up will continue to depend on crude oil earnings, foreign exchange inflows and broader economic conditions.
