Nigeria’s external reserves rose by $7.09 billion in 2026, reaching $52.66 billion by August 19, according to data from the Central Bank of Nigeria (CBN).
That represents a 15.6 per cent increase from the $45.57 billion recorded on January 2, 2026.
The CBN data showed that the reserves moved mostly upward through the year, despite a brief fall in the second quarter.
Between April 1 and May 7, the reserves dropped by $855 million, from $49.18 billion to $48.33 billion, which was the lowest level in the period reviewed.
However, the dip did not last long.
The reserves recovered by about $4.33 billion over the next three months, crossing $50 billion in early June and reaching $51.06 billion by June 19.
They went beyond $52 billion in July and climbed further from $51.94 billion on August 3 to $52.66 billion on August 19.
What Drove The Increase
The buildup came alongside better foreign exchange liquidity and a stronger naira in recent months.
At the Nigerian Foreign Exchange Market (NFEM), the naira traded at about ₦1,346.90 to the dollar as of August 21, based on recent market data.
Analysts linked the reserve growth to stronger foreign exchange inflows, including higher oil earnings, portfolio investment and improved export performance.
Dr Jerry Igwilo, Chief Executive Officer of Nisela Capital Limited, said recent crude oil gains helped raise Nigeria’s dollar earnings.
He said, “We have seen that in the last couple of months, the prices of crude oil have gone up because of the Iran-US war. What that has done is that it has increased the amount of dollars we get for selling our crude oil.”
He added, “For Nigeria, the increase in foreign reserves means that we’re able to get in more revenue in foreign currency.”
Investor Inflows And FX Policy
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said improved investor confidence also supported the reserve buildup.
He linked the gains to portfolio inflows and stronger export earnings.
The reserve growth also comes as the CBN continues changes in the foreign exchange market to improve transparency and liquidity.
That gives the monetary authorities more room to support the naira and respond to external pressure when demand for foreign exchange rises.
External reserves are one of the country’s strongest buffers against economic shocks.
A higher reserve position can help stabilise the currency, support imports and give policymakers more confidence in managing volatility.
The latest figures suggest a stronger external position for Nigeria than was seen earlier in the year, even though pressure on the economy remains.
