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Nigeria’s foreign exchange reserves have risen to $58.81 billion, their highest level in nearly 18 years, following a sharp increase of $3.73 billion in three days, according to data from the Central Bank of Nigeria (CBN).
The reserves rose from $55.08 billion on October 9 to $58.81 billion on October 12, bringing Nigeria close to the approximately $58.91 billion recorded on November 19, 2008.
The latest increase extends the upward trend recorded since September, when the reserves grew from approximately $53.90 billion on September 1 to $54.93 billion at the end of the month.
The reserves subsequently rose to $54.95 billion on October 2 and $55.08 billion on October 9 before recording the latest surge.
Overall, the reserves increased by approximately $4.91 billion, or 9.1 per cent, between September 1 and October 12.
However, the specific factors responsible for the sharp $3.73 billion increase between October 9 and 12 have not been established by the available data.
Nigeria’s external reserve position has improved considerably over the past year. The reserves reportedly increased by $12.76 billion year-on-year to $54.61 billion as of September 14, 2026, before rising further to the latest level.
The development comes as CBN Governor Olayemi Cardoso has highlighted the role of foreign exchange market stability in strengthening investor confidence. Nigeria’s net foreign reserves have also risen to $46 billion, although net and gross reserves measure different aspects of the country’s external financial position.
Gross foreign reserves represent the country’s overall stock of external assets, while net foreign reserves account for specified foreign currency liabilities and other relevant obligations, depending on the methodology applied.
The increase in reserves strengthens Nigeria’s external financial buffer and could support the CBN’s efforts to manage foreign exchange pressures. However, a higher reserve balance does not automatically translate into an immediate appreciation of the naira, as exchange rates are influenced by several factors, including foreign currency demand and supply, capital flows and market expectations.
The latest figures also come against the backdrop of changes in monetary policy and an improved economic growth outlook.
At its September 21–22, 2026, Monetary Policy Committee meeting, the CBN reduced the Monetary Policy Rate (MPR) by 350 basis points, from 26.5 per cent to 23 per cent. The committee also adjusted the standing facilities corridor around the policy rate to +50/-300 basis points.
Meanwhile, the World Bank raised its forecast for Nigeria’s economic growth in 2026 to 4.3 per cent, from 4.0 per cent in 2025, and projected growth of 4.4 per cent in both 2027 and 2028.
The bank attributed the improved outlook to factors including greater macroeconomic stability, stronger investor confidence and a gradual recovery in private investment, while emphasising the importance of sustaining economic reforms.
The latest reserve figure represents a significant improvement in Nigeria’s external position. Its lasting economic benefits, however, will depend on the sustainability of the increase, the underlying sources of foreign currency inflows and the extent to which improved external liquidity translates into greater exchange rate stability and stronger economic activity.
