External Reserves Rise $527m In 3 Weeks To $48.89bn

Nigeria’s gross external reserves rose to $48.54 billion on May 14, 2026, extending a month-long recovery that added over $527.297a million to the country’s foreign currency buffer in three weeks and reinforcing signs of improving external liquidity amid sustained reforms in the foreign exchange market.

Latest data from the Central Bank of Nigeria (CBN) showed that reserves increased steadily from $48.36 billion recorded on May 4 to $48.89 billion as of May 21, a 1.1 per cent rise, reflecting renewed dollar inflows into the economy and easing pressure on the nation’s external position.

On a month-on-month basis, reserves recorded an accretion of $377.715 million, bringing them to $48.53 billion as of April 21.

On a year-to-date basis, the reserves had risen by $3.326 billion from $45.565 billion on January 2 this year, a 6.8 per cent increase in the five-month period.

However, the reserves have risen by about $10.346 billion compared to the $38.544 billion recorded in the corresponding period of 2025, representing a year-on-year increase of roughly 26.8 per cent.

The sharp annual growth underscores the improvement in Nigeria’s external earnings profile over the past 12 months, supported by increased foreign portfolio inflows, higher diaspora remittances, improved oil export receipts and tighter monetary policy conditions that boosted investor appetite for naira assets.

Meanwhile, the value of the naira saw a slight depreciation last week as it declined by 0.8 per cent week on week to N1,366.82 to the dollar, as local demand offset offshore supply from Thursday’s OMO auction. In the forwards market, the naira rates depreciated by 0.2 per cent across the 1-month to N1,397.27, 3-month to N1,436.18, 6-month to N1,492.56 and 1-year to N1,605.18.

Analysts expect the naira to remain broadly stable in the near term, underpinned by resilient local and foreign inflows amid still-strong market confidence, Nigeria’s favourable external position, and sustained carry-trade appeal.

However, in the event of a re-escalation of the US-Iran conflict that triggers portfolio outflows, they expect the CBN to deploy measured foreign exchange interventions to limit excessive volatility.