18 years on, external reserves return to $54bn territory

A stronger foreign exchange buffer is emerging for Nigeria, with external reserves reaching $54.08 billion on September 3, 2026, their highest level since December 2008.

Central Bank of Nigeria data showed that reserves rose from $53.99 billion a day earlier and $53.90 billion on September 1.

The position has gained approximately $8.51 billion since the beginning of the year, when reserves stood at about $45.57 billion, representing an increase of nearly 19 percent.

At the current level, the reserves are within reach of the $54.21 billion recorded in December 2008, when elevated oil earnings helped drive the country’s external buffers to one of their strongest levels.

The pace of accumulation has become more pronounced in recent weeks.

CBN data showed reserves at $51.94 billion on August 3, rising to $52.06 billion by August 7 and $52.32 billion on August 14. The position climbed further to $52.83 billion on August 21 and $53.51 billion on August 28.

By August 31, reserves had reached $53.81 billion before crossing the $54 billion threshold three days later.

That represents an increase of about $2.14 billion during August and the first three days of September, highlighting the acceleration in reserve accretion.

The buildup has been supported by stronger oil-sector performance and other foreign exchange inflows, providing the country with greater external liquidity.

Nigeria’s reserve position has now also surpassed the CBN’s projected $51.04 billion reserve level for the whole of 2026.

Improved oil-sector performance has been an important factor behind the stronger external position.

Operational data from the Nigerian National Petroleum Company showed crude oil and condensate production averaging 1.68 million barrels per day in April, 1.73 million bpd in May and 1.72 million bpd in June. Output stood…