Olayiwola Mercy
Nigeria’s foreign reserves have climbed above $50 billion, according to the Director of the Monetary Policy Department at the Central Bank of Nigeria, Victor Oboh. Speaking on TVC News’ _Business Nigeria_ programme on May 25, 2026, Oboh said, “As I speak to you now, foreign reserves stand above 50 billion US dollars.” The figure represents a fresh milestone for the country’s external buffers and comes after reserves stood at about $49.49 billion as of May 15. f0f7
The latest buildup continues a recovery that began in early 2026. CBN Governor Olayemi Cardoso had announced in February that gross external reserves reached $50.45 billion on February 16, the highest level in 13 years. At that point, the reserves provided import cover for about 9.68 months of goods and services, giving the CBN more room to intervene in the foreign exchange market and meet external obligations without immediate pressure. 90e8
Oboh linked the improvement to ongoing efforts to strengthen external liquidity and macroeconomic stability. He noted that the higher reserve level reflects the impact of recent foreign exchange reforms, increased non-oil exports, and a healthier current account position. The CBN has repeatedly emphasized that market confidence has been central to the turnaround, with officials highlighting more transparent operations and the elimination of multiple exchange rate windows. f0f7
The reserve growth has been supported by both oil and non-oil inflows. The CBN’s 2026 macroeconomic outlook projected reserves would rise to $51.04 billion, driven by stronger oil earnings, sovereign bond issuances, steady diaspora remittances, and reduced pressure from fuel imports as domestic refining capacity expands. Officials also point to improved security around oil installations and better compliance with remittance inflows through licensed International Money Transfer Operators. 5992
For the naira, the stronger reserve position has translated into greater stability. Analysts have noted that the currency has been trading closer to its purchasing power parity value, with the gap between the official and parallel market rates narrowing to less than 2% on average in 2025. Cardoso said the reforms were designed to eliminate distortions that previously benefited a privileged few and to restore trust in the official market. 1791
The significance goes beyond short-term exchange rate management. Net external reserves rose to $34.80 billion at the end of 2025, up from $3.99 billion in 2023, marking a 772% increase in two years. That jump reflects a change in the quality of the buffers, with fewer encumbrances and more usable liquidity. It also gives the CBN more flexibility to absorb external shocks without resorting to abrupt devaluations or capital controls. 1791
The milestone comes at a time when Nigeria is trying to sustain investor confidence and signal policy consistency ahead of the 2026 budget cycle. While the CBN has avoided giving a timeline for hitting $51 billion, officials say the trajectory depends on maintaining reforms, boosting non-oil exports, and keeping remittance inflows steady. With reserves now above $50 billion, the question is whether the CBN can convert that buffer into sustained naira stability and lower import costs for businesses and households.
