Nigeria’s Foreign Reserves Rise to $54.41bn, Highest in 18-Year
Nigeria’s foreign reserves increased to $54.410 billion following the latest round of FX inflows into the local economy, with more than 99% of the credit balance staying liquid.
The country’s gross external reserves edged higher to their highest level in 18 years, driven by elevated global oil prices amid the Middle East conflict and a sustained increase in local production.
Nigeria has added $604 million to its gross external reserves balance, which stood at $53.806 million at the end of August, according to data from the Central Bank.
Economists said the inflows include amounts generated by remittances and hydrocarbons, though some analysts think they also include foreign portfolio investment.
Liquid reserves stood at $53.886 billion, indicating that the bulk of Nigeria’s external reserves are readily available for conversion to cash to meet foreign exchange and external payment obligations.
A slew of analysts confirmed that Nigeria’s rising foreign reserves were helped by lower demand for the US dollar to import crude since Dangote Refinery began operations.
Oil prices rose this week as escalating U.S.-Iran tensions heightened concerns about regional supply disruptions and fueled fears of higher energy costs and inflation.
Precious metals declined this week, as stronger U.S. inflation and rising oil prices increased expectations of a Federal Reserve rate hike, strengthening the dollar and reducing demand for gold, silver and platinum, while concerns over weaker industrial demand weighed on lead, aluminium, tin and zinc.
Crude oil remained Nigeria’s largest single export earner in Q2 2026, with export receipts of N12.91 trillion, accounting for 47.79% of total exports, the country’s latest trade data revealed.
Data released by the National Bureau of Statistics (NBS) revealed that Nigeria’s external trade position strengthened significantly in Q2 2026, as a sharp rally in crude oil prices and stronger petroleum product exports pushed the merchandise trade surplus to a record N12.60 trillion, a 101.32% year-on-year (y/y) increase from N6.26 trillion.
The surplus was Nigeria’s largest on record in the NBS quarterly trade series, underscoring the extent to which a renewed spike in global oil prices, triggered by the closure of the Strait of Hormuz following the outbreak of conflict between the United States and Iran in late February, flowed through to Nigeria’s export earnings.
Total exports rose to N27.02 trillion, up 18.77% y/y, while imports also increased to N14.42 trillion, up 5.91% q/q, even as they remained 12.55% lower y/y.
The country’s total merchandise trade rose to N41.44 trillion, up 5.61% y/y and 19.13% q/q. Exports accounted for 65.20% of total trade during the quarter, their highest share on record, reflecting the extent to which the oil price shock drove the improvement in the external position this quarter, a distinct dynamic from Q1’26, when the surplus widened primarily on the back of import compression
Crude oil earnings rose by 7.93% y/y and 15.28% q/q from N11.20tn in Q1 2026. The increase was driven by a sharp rally in global oil prices: Brent crude averaged US$99.44/bbl in Q2 2026, up from US$77.11/bbl in Q1 2026 and 49.15% higher than the US$66.67/bbl average recorded in Q2 2025.
Oil prices spiked well above US$100 per barrel in April and May after the closure of the Strait of Hormuz — a chokepoint that in ordinary times carries roughly a fifth of global oil trade — following the outbreak of conflict between the United States and Iran on 28 February 2026, before easing back toward the low-US$70s by early July after a ceasefire framework and a phased reopening of the strait were initially agreed in mid-June.
Unlike in Q1 2026, when higher crude prices supported export earnings despite a marginal decline in crude production, the increase in Q2 2026 export earnings was supported by both higher prices and higher volumes.
Average crude oil production, excluding condensates, increased to 1.53mbpd in Q2 2026 from 1.38mbpd in Q1 2026, representing a 10.9% q/q increase. Crude Oil Prices Decline as Trump Plans to End Iran War
