HARRISON EDEH

NIGERIA’s external reserves have been on upward trajectory rising by $7.09 billion from January 2026 2026, reaching $52.66 billion as of August 19, according to the latest figures from the Central Bank of Nigeria (CBN).

Accordingly, the growth represents a 15.6 per cent expansion in less than eight months, up from $45.57 billion recorded on January 2, 2026.

Economic watchers say this development strengthens the central bank’s external buffer which ensures currency stability, capacity to meet external forex obligations and cushion the economy from external shocks.

Accordingly ,the spike also gives monetary authorities additional firepower to stabilize the local currency and absorb external economic shocks.

The rise also gives better credit rating to Nigerian economy with a stablen economic outlook.

Stronger reserves also lower perceived sovereign risk,which can reduced Eurobond yikes and borrowing costs and underpin investor confidence which also gives greater firepower to the apex bank to manage exchange rate pressures.

The data showed that the reserves dipped by $855 million between April 1 and May 7, falling from $49.18 billion to a period low of $48.33 billion.

Since hitting that low in May, the reserves have rebounded strongly, gaining $4.33 billion over the past three months.

The balance crossed the $50 billion mark in early June, reached $51.06 billion by June 19, and broke past $52 billion in July.

From $51.94 billion on August 3, the reserve balance added approximately $715 million in under three weeks to close at $52.66 billion on August 19.

The buildup in external reserves has coincided with improved foreign exchange liquidity and a stronger naira in recent months.

The naira traded around N1,346.90/$ at the Nigerian Foreign Exchange Market (NFEM) as of August 21, according to recent market data.