Market News

By Uche Usim

Nigeria’s foreign exchange (FX) reserves have climbed to $48.5 billion, the highest level in nearly 13 years, underscoring renewed stability in the country’s external position.

Latest data from the Central Bank of Nigeria (CBN) show that the reserves peaked on Tuesday at $48.5 billion, the strongest level since May 14, 2013, when they stood at about $48.51 billion.

The steady climb reflects a 6.45 per cent year-to-date increase, equivalent to $2.94 billion, from $45.56 billion recorded on January 1. A day earlier, on Monday, reserves were $48.36 billion, highlighting the consistent upward movement.

The rebound signals improving investor confidence and the impact of ongoing foreign exchange reforms introduced by monetary authorities to stabilise the naira and strengthen liquidity in the FX market.

According to the CBN, FX reserves are assets held by a monetary authority in foreign currencies to back liabilities and influence monetary policy. They serve as a buffer against external shocks, help manage exchange rate volatility, and reassure investors of a country’s capacity to meet its international obligations.

The apex bank has projected further gains. On December 22, 2025, it forecast that external reserves would rise to $51.04 billion in 2026, anchored on sustained reforms in the FX market.

“Reforms in the foreign exchange market are expected to sustain exchange rate stability, while external reserves are projected to increase to US$51.04 billion,” the CBN stated.

The latest data appear to validate that outlook, as reforms aimed at improving transparency, boosting supply, and attracting inflows begin to yield measurable results.

Earlier this month, on February 10, the CBN Governor, Olayemi Cardoso, reaffirmed the bank’s commitment to defending the naira and reinforcing the nation’s reserve buffers.

He said the apex bank would do “whatever it takes” to safeguard the value of the naira while strengthening Nigeria’s external reserves.

Ahead of 2030, Cardoso outlined ambitious macroeconomic targets, including achieving single-digit inflation and building a more resilient reserve base driven by non-oil exports, foreign direct investment, and diaspora remittances.

The renewed momentum in reserves comes at a critical time as policymakers seek to consolidate macroeconomic stability, restore investor confidence, and reposition Africa’s largest economy for sustainable growth.

If sustained, analysts say the build-up in reserves could enhance Nigeria’s credit outlook, provide stronger cover for imports, and create more room for monetary authorities to navigate global headwinds.