Nigeria's external reserves hit $54.08bn, highest in 18 years, as naira strengthens to N1,315/$

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Nigeria's external reserves climbed to $54.08 billion on September 3, the highest level in about 18 years. The naira also strengthened to N1,315 per dollar in the official foreign exchange market, one of its best showings in over two years.

Reserves up 18.7% in eight months

Data from the Central Bank of Nigeria (CBN) show reserves stood at $54.08 billion on September 3, up from $53.99 billion on September 2 and $53.90 billion on September 1. That is an increase of about $1.42 billion from $52.66 billion recorded on August 19.

Compared with the start of the year, the gain is sharper. Reserves were about $45.56 billion on January 2, meaning Nigeria added $8.52 billion, or 18.7 per cent, in just over eight months.

The reserves crossed the $53 billion mark on August 24, reaching $53.11 billion. They rose to $53.30 billion on August 26, $53.51 billion on August 28 and $53.81 billion on August 31.

According to CBN data, the last time Nigeria's external reserves were around the $54 billion level was on December 22, 2008, when they reached about $54.21 billion.

Way above CBN's 2026 projection

The current position is also significantly higher than the CBN's earlier forecast. The apex bank had projected external reserves of about $51.04 billion by the end of 2026. At $54.08 billion, the reserves are already roughly $3.04 billion above that target.

CBN Governor Olayemi Cardoso has attributed the rise in reserves to stronger foreign-exchange inflows. These include receipts linked to crude oil-related taxes and third-party inflows, according to the governor.

What this means for the naira and businesses

Higher reserves give Nigeria a larger buffer against external shocks and can support stability in the foreign exchange market. For Nigerians and businesses that depend heavily on imported goods, the resulting FX stability could gradually reduce uncertainty caused by sharp currency movements.

Sustained naira strength will depend on whether Nigeria keeps FX inflows strong, improves oil-sector earnings and holds external reserves on an upward path.

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