Nigeria’s foreign reserves rise by $295m in October

By Adanna Nnamani

Nigeria’s gross external reserves increased by $295.35 million in October 2026, recording the slowest positive monthly growth so far this year amid a moderation in the pace of foreign exchange reserve accumulation.

Data from the Central Bank of Nigeria (CBN) showed that the country’s reserves rose from $54.93 billion at the end of September to $55.22 billion on October 30, 2026.

The increase sustained Nigeria’s reserve accumulation trend, although it was significantly lower than the gains recorded in previous months.

The reserves opened October at $54.95 billion on October 2, rising gradually to a peak of approximately $55.26 billion on October 27 before easing to $55.22 billion at the end of the month.

A review of the monthly movements showed that October recorded the smallest increase among the months that posted positive growth in 2026.

February recorded the highest monthly increase of approximately $3.41 billion, while reserves added about $1.22 billion in May and $1.88 billion in June.

In July, the reserves increased by approximately $464.87 million before recording another gain of $1.88 billion in August. September added about $1.12 billion.

The October gain of $295.35 million was significantly below these figures, indicating a slowdown in the country’s external reserve accumulation.

The reserve position experienced some fluctuations earlier in the year, with February’s strong growth followed by contractions in March and April.

Specifically, reserves declined by approximately $455.52 million in March and by a further $874.45 million in April before recovering in May.

Despite the moderation in October, Nigeria’s gross external reserves remained above the $55 billion threshold, providing the country with a substantial buffer against external shocks and supporting its capacity to meet foreign exchange obligations.

Meanwhile, Nigeria’s net foreign reserves have also recorded significant improvement.

An earlier report by Nairametrics indicated that the country’s net foreign reserves had risen to a record $46 billion, reflecting an improvement in its external liquidity position.

Unlike gross reserves, net reserves account for certain short-term foreign currency liabilities and other adjustments, providing a different measure of the country’s available external buffers.

However, the moderation in reserve accumulation coincided with renewed pressure on the naira in October, after the currency recorded gains over the preceding three months.

The naira reversed about 42 per cent of its July-to-September gains, weakening from N1,329.50 per dollar at the end of September to N1,346 per dollar on October 30.

The development came as the foreign exchange market recorded fresh pressure, despite the country’s relatively strong gross reserve position.

Nigeria’s external reserves remain an important indicator of its capacity to support exchange rate stability, meet international payment obligations and strengthen investor confidence.