Nigeria’s external reserves have surged past the $46 billion mark, marking the highest level in nearly eight years and signaling renewed confidence in the country’s foreign exchange management. Data from the Central Bank of Nigeria (CBN) shows that reserves stood at $46 billion as of January 22, 2026, rising from $40.8 billion at the start of 2025 and $45.5 billion at the end of last year.
The remarkable build-up reflects a combination of sustained foreign exchange inflows, tighter currency management, and ongoing economic reforms. Key contributors include increased repatriation of export proceeds, stronger remittances from the Nigerian National Petroleum Company Limited (NNPC), and higher dollar-to-naira conversions by businesses operating in the official market.
Expert Reactions Highlight Positive Momentum
Economist Celestine Ukpong noted, “The consistent accumulation of external reserves shows that the Central Bank’s policies are working. By stabilizing the naira and improving FX inflows, Nigeria is positioning itself for a more resilient pre-election economy.”
FX analyst Peter Adebayo, FCA, emphasized the market impact, saying, “A reserve level above $46 billion provides the CBN with a stronger buffer to manage liquidity and stabilize the exchange rate. This is likely to narrow the gap between official and parallel market rates, boosting investor confidence.”
Investment banker Ngozi Eze added, “For international investors, rising reserves are a signal of macroeconomic stability. It strengthens the case for Nigeria as a viable investment destination, particularly in sectors sensitive to foreign exchange volatility.”
Reserves Growth and Market Implications
Since December 2025, Nigeria’s external reserves have grown by over $1 billion, with more than $500 million added in the first three weeks of January 2026 alone. At current levels, the reserves are estimated to cover about 15 months of goods imports, providing a substantial cushion against external shocks and currency volatility.
The improved reserve position coincides with more stable exchange rates, reducing pressures in both the official and parallel FX markets. Analysts argue that this stability enhances confidence in the naira and supports smoother trade and investment flows.
The CBN projects that ongoing reforms and sustained inflows could lift reserves to around $51 billion by the end of 2026, reinforcing Nigeria’s macroeconomic outlook and providing policymakers with greater flexibility in monetary management.
Nigeria’s external reserves hit $46bn, an eight-year high, reflecting FX reforms and rising inflows. Experts highlight improved naira stability and stronger investment confidence.
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