Nigeria’s reserve buffers strengthen as external assets reach $49.58bn

Nigeria’s external reserves recorded a significant boost in May 2026, rising by approximately $1.22 billion within the month to close at $49.58 billion, according to the latest figures released by the Central Bank of Nigeria.

The development underscores the continued strengthening of the country’s external position amid ongoing foreign exchange reforms, increased capital inflows and efforts by monetary authorities to stabilize the naira and restore investor confidence.

Data published by the apex bank showed that gross external reserves increased from $48.36 billion on April 30, 2026, to $49.58 billion as of May 29, 2026, representing a month-on-month growth of about 2.5 percent.

The reserve position maintained a consistent upward trajectory throughout May, rising from approximately $48.34 billion at the beginning of the month and crossing the $49 billion threshold on May 25 before ending the month at one of its strongest levels in recent years.

The latest figure places Nigeria within striking distance of the symbolic $50 billion reserve benchmark, a level analysts say could further strengthen the country’s ability to withstand external shocks and support exchange rate stability.

A year ago, Nigeria’s external reserves stood at $38.47 billion as of May 29, 2025.

The latest figure of $49.58 billion therefore represents an increase of approximately $11.11 billion over a 12-month period, translating to annual growth of nearly 29 percent.

Compared to May 2024, when reserves stood at $32.70 billion, Nigeria has added about $16.88 billion to its foreign reserve stockpile.

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The growth comes despite occasional fluctuations in reserve levels. Earlier in March 2026, reserves had declined from over $50.08 billion on March 12 to $49.61 billion by March 23, reflecting routine market interventions and external obligations.

The naira closed May 2026 at approximately N1,372 per dollar in the official market, compared to N1,585.50 per dollar during the same period in 2025, indicating a significant appreciation over the past year.

The CBN has consistently maintained a tight monetary policy stance, combining elevated interest rates with foreign exchange market interventions aimed at controlling inflation and reducing volatility in the currency market.

A Lagos-based financial analyst, Dr. Seyi Ogundimu, noted that stronger reserves improve Nigeria’s credit profile and enhance its capacity to meet international payment obligations.

According to him, a reserve level approaching $50 billion provides assurance to foreign investors and rating agencies that the country possesses adequate liquidity to support imports and service external debt commitments.

He, however, cautioned that sustaining the growth would depend on continued inflows from oil exports, diaspora remittances and foreign portfolio investments.

Another market analyst, Kunle Bright, observed that while rising reserves provide a positive signal to investors, the quality and sustainability of inflows remain important considerations.

According to him, durable reserve growth should increasingly come from non-oil exports, manufacturing and foreign direct investment rather than short-term capital inflows.