Nigeria’s Foreign Reserves Top $54bn, Extend Import Cover
Nigeria’s gross foreign reserves topped $54 billion, the highest on record since 2008, according to data obtained from the Central Bank portal.
The surge in gross external reserves is supported by inflows from global sources that the authority does not usually fully disclose.
Elevated oil prices and increased output have boosted Nigeria’s forex receipts, and remittances from abroad have also been strong, reaching about $1 billion a month, according to a recent disclosure by the authority.
Positive sentiment around easy capital repatriation from Nigeria continues to attract hot money into the economy, with foreign portfolio investors targeting high-yield financial assets in the local capital market.
Data from the Central Bank showed the nation’s gross external reserves rose to $54.083 billion as of September 3, an absolute increase of $277 million since the beginning of the month.
The strong current account surplus, alongside sustained remittance inflows and strong, albeit moderating, portfolio inflows, has facilitated a significant accumulation of foreign exchange reserves, Moody’s said in a rating note.
Nigeria’s foreign reserves closed out August at $53.806 billion. The Reserves remained above the CBN’s $51.04 billion full-year target, providing approximately 10.5 months of import cover and reinforcing Nigeria’s external liquidity position, Cowry Asset Limited said in a report.
In the global commodity market, oil prices have climbed above August levels due to the unresolved conflict in the Middle East, with ongoing military actions by the US and Iran.
Last month, crude oil prices weakened as the geopolitical risk premium tied to Middle East tensions moderated amid diplomatic developments.
Brent crude fell 7.46% to $83.40 per barrel in August, from $90.12 at the end of July, while Bonny Light declined 6.64% to $88.50/bbl, from $94.79/bbl.
Investment firm Cowry Asset Management Limited said in a report that despite the decline, Bonny Light remained $13.50/bbl above the 2026 budget benchmark of $75.00/bbl, providing some cushion for fiscal and external balances.
Overall, the stronger reserve position, improved dollar liquidity and sustained FX inflows remain supportive of the naira at the official window.
However, the widening parallel-market premium and softer crude prices warrant monitoring, particularly as seasonal FX demand evolves and global oil-market conditions continue to shape Nigeria’s external earnings.
Nigeria nevertheless remains exposed to shifts in global investor demand because non-resident portfolio inflows have become an important source of both foreign currency and domestic-market financing, Moody’s had warned.
