Nigeria’s external reserves have risen above $46 billion, reaching their highest level in roughly eight years and reinforcing the country’s position among Africa’s top five economies by reserve buffers.
According to Central Bank of Nigeria data dated January 22, 2026, the increase reflects a steady accumulation of foreign exchange reserves that has continued since 2025.
The stronger reserve position improves Nigeria’s import cover, supports confidence in the naira, and provides policymakers with greater flexibility to manage external shocks as the country approaches another election cycle.
The rebound also marks a clear shift from years of pressure on reserves caused by oil price volatility, foreign exchange demand backlogs, and rising import costs.
Nigeria last recorded comparable reserve levels in 2018, before reserves declined in the years that followed due to pandemic-related disruptions, weaker oil revenues, and challenges linked to currency management.
Over the past decade, Nigeria’s reserves have shown significant volatility, falling below $35 billion at certain points before beginning a gradual recovery in late 2024, which gathered pace throughout 2025.
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Several factors have driven the recent rise in reserves. Higher crude oil production and export earnings have boosted dollar inflows, while foreign exchange market reforms, including exchange-rate unification and tighter monetary conditions, have helped attract portfolio investment and reduce speculative pressure.
In addition, lower demand for fuel imports, supported by increased domestic refining capacity, has reduced one of Nigeria’s largest sources of foreign exchange outflows.
Remittance inflows and cautious reserve management by the CBN have also contributed, allowing reserves to grow despite ongoing global economic uncertainty.
With reserves at $46 billion, Nigeria now ranks firmly among Africa’s largest reserve holders.
South Africa holds reserves above $55 billion, supported by diversified exports and deep financial markets, while Egypt operates in a similar range, backed by remittances, tourism, and revenues from the Suez Canal.
Libya remains the continent’s largest reserve holder, with levels above $70 billion, largely driven by oil income.
Nigeria’s improved position places it ahead of several regional peers and narrows the gap with the major economies of North and Southern Africa.
Analysts note that maintaining this momentum will depend on stable oil output, disciplined fiscal management, and the continuation of foreign exchange reforms, which will be key to turning stronger reserves into lasting macroeconomic stability.
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Image Credit: The Trumpet
