Nigeria’s foreign exchange reserves rose by $3.73 billion in three days to $58.81 billion as of October 12, 2026, reaching their highest level in nearly 18 years, according to data from the Central Bank of Nigeria (CBN).
The reserves increased from $55.08 billion on October 9 to $58.81 billion on October 12, bringing the cumulative gain since the beginning of September to $4.91 billion, or approximately 9.1 per cent.
The latest balance is close to the $58.91 billion recorded on November 19, 2008, when Nigeria’s reserves last reached a comparable level.
The increase strengthens the country’s external financial position as the CBN seeks to sustain improvements in foreign exchange liquidity and support stability in the naira.
However, the available data do not specify the transactions or inflows responsible for the sharp three-day increase, leaving questions about the source and sustainability of the gains.
CBN Governor Olayemi Cardoso said in September that gross external reserves stood at $55.25 billion as of September 18, enough to cover 11.3 months of imports of goods and services.
He attributed the stronger external position to easing foreign exchange pressures.
The latest figures represent a further increase, although the import-cover ratio would need to be recalculated using updated trade and payment data.
Nigeria’s net foreign reserves have also risen to a record $46 billion, up from $34.8 billion at the end of December 2025, according to figures previously disclosed by Cardoso.
Unlike gross reserves, net reserves account for certain foreign exchange liabilities, including obligations linked to swaps and forward contracts, providing a different measure of the country’s external liquidity.
For businesses, higher reserves could strengthen confidence in the naira and improve the CBN’s ability to manage periods of increased demand for foreign currency.
Import-dependent manufacturers, retailers and other businesses that rely on foreign inputs could benefit if the improvement leads to more predictable access to dollars for raw materials, machinery and international payments.
A stronger reserve position could also boost investor confidence by improving perceptions of Nigeria’s ability to meet external obligations and withstand shocks to foreign exchange earnings.
However, rising reserves alone do not guarantee exchange rate stability or eliminate dollar shortages.
The impact will depend on the consistency of foreign exchange inflows, import demand, external debt obligations and the CBN’s management of market liquidity.
The composition of the latest increase will therefore be important in determining whether the gains represent a lasting improvement in Nigeria’s external position.
The reserve growth comes after the CBN cut its benchmark Monetary Policy Rate by 350 basis points to 23 per cent at its September meeting, from 26.5 per cent previously, as monetary authorities adjusted policy amid improving economic conditions.
Sustaining reserve accumulation while ensuring businesses have better access to foreign exchange will be crucial to translating the stronger external position into wider economic benefits.
