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Nigeria’s external reserves rose by $9.29 billion in the first nine months of 2026, more than seven times the increase recorded during the corresponding period of 2025, according to data from the Central Bank of Nigeria.
The reserves increased from $45.57 billion on January 2 to $54.86 billion as of September 24, representing a 20.4 per cent gain. During the same period in 2025, reserves rose by approximately $1.32 billion, from $40.88 billion to $42.20 billion.
This latest increase places the 2026 reserve accumulation at roughly seven times the gain recorded in the comparable period last year.
The country’s external reserves maintained a broadly upward trajectory throughout much of 2026, crossing several key thresholds during the period.The stock reached $50.04 billion on June 4 and rose to $51.04 billion by June 18.
It climbed further to $51.92 billion on August 12 and crossed the $53 billion mark on August 24, reaching $53.11 billion.
Reserves stood at $53.90 billion on September 1 before crossing $54 billion on September 3 at $54.08 billion. The stock continued to rise through September, reaching $54.41 billion on September 10, $54.69 billion on September 17 and $54.86 billion on September 24.
The latest position represents a $2.20 billion increase from the $52.66 billion recorded on August 24.At $54.86 billion, Nigeria’s reserve stock is $3.82 billion above the CBN’s projected year-end level of $51.04 billion for 2026.
The country therefore exceeded the central bank’s full-year reserve projection before the end of the third quarter. The stronger reserve position provides a larger external liquidity buffer than was available at the beginning of the year, when reserves stood at $45.57 billion.
It could also support confidence in the foreign exchange market by improving the country’s capacity to meet external payment obligations and manage periods of market pressure.
The reserve build-up has coincided with a sharp increase in foreign capital inflows into Nigeria.
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Data from the National Bureau of Statistics showed that Nigeria attracted $10.37 billion in foreign capital in the first quarter of 2026, representing an 83.8 per cent increase from the $5.64 billion recorded in the same period of 2025.
Foreign portfolio investment accounted for a substantial share of the inflows. Portfolio investment reached $3.37 billion in January 2026, representing 95.72 per cent of total capital imported during the month.
The stronger inflows coincided with increased activity in the foreign exchange market and periods of improved naira performance at the official market.
Portfolio inflows can strengthen reserves and improve foreign exchange liquidity, although they are generally more sensitive than foreign direct investment to interest rates, exchange-rate expectations and global investor sentiment.
Despite the stronger reserve position, Quest Merchant Bank warned that the CBN’s sharp reduction of the monetary policy rate to 23 per cent could weaken foreign investors’ appetite for naira-denominated assets.
In a research note following the Monetary Policy Committee’s September meeting, Quest economists said the 350-basis-point cut had narrowed the interest-rate differential that supported strong carry-trade inflows into Nigeria’s money and bond markets in recent quarters.
The bank said the lower return on naira assets, against a backdrop of elevated global policy rates, could prompt some offshore investors to reduce their participation in Treasury bill and Federal Government bond auctions.
A decline in portfolio inflows could eventually affect foreign exchange liquidity and exchange-rate stability, particularly because a significant portion of recent capital inflows has been portfolio-based rather than long-term direct investment.
The reserve accumulation therefore marks a significant improvement in Nigeria’s external position, but sustaining the gains will depend on the durability of capital inflows, export earnings, oil-market conditions and investor confidence in naira assets.
