CBN urged to use stronger reserves to stabilise naira, ease household pressure

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Oluseun Onigbinde, economist and co-founder of BudgIT, has called on the Central Bank of Nigeria to use the country's stronger external reserves to support the naira and reduce the burden on households. His advice comes as pressure grows on the Federal Government to reconsider the removal of fuel subsidy.

Onigbinde argued that the CBN now has more room to act, given the sharp rise in Nigeria's foreign reserves in 2026.

Reserves hit $52.83 billion

Latest CBN data reported on August 25 put Nigeria's external reserves at about $52.83 billion as of August 21, 2026. That represents an increase of about $7.27 billion from the beginning of the year.

The figure shows a significant improvement in the country's external buffers, a development analysts say could give the central bank greater flexibility in managing the naira.

Fuel subsidy call adds to pressure

The push for the CBN to act comes alongside renewed calls for the Federal Government to revisit its removal of fuel subsidy. Onigbinde linked the need for currency stability to the wider cost-of-living pressures facing Nigerian households.

He said stronger reserves should be leveraged to stabilise the naira, which would help ease pressure on consumers already dealing with high energy and transport costs.

For the naira, the latest reserve position means the CBN has more firepower to intervene in the foreign exchange market. Whether it does so will depend on policy choices in the coming months.

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