Reserves Hit $55.25bn, Current Account Surplus Up 67.92% as FX Pressures Ease

Nigeria’s foreign exchange pressures have receded as gross external reserves climbed to $55.25 billion, the highest in 18 years, the Central Bank of Nigeria said. The current account surplus rose 67.92 per cent to $7.54 billion in the second quarter of 2026.

The figures were contained in the communiqué of the 307th Monetary Policy Committee meeting on Tuesday. The MPC said external-sector fundamentals improved and investor confidence strengthened. CBN cut the benchmark interest rate to 23 per cent from 26.5 per cent to reset the Monetary Policy Rate and recalibrate the policy corridor.

External buffers and current account

Current account surplus increased from $4.49 billion in the first quarter to $7.54 billion in the second quarter. Balance of payments surplus rose from $2.38 billion to $3.51 billion over the same period. CBN said the improvement contributed to greater stability in the foreign exchange market.

Governor Olayemi Cardoso said foreign exchange pressures had receded significantly and external buffers had been rebuilt. He said: “Gross external reserves stood at US$55.25 billion as of September 18, 2026, the highest in 18 years, and sufficient to finance 11.3 months of import of goods and services.”

“Of course, we have been able to rebuild our reserves, and the whole conversation around rebuilding the reserves, we know that today, and it was mentioned in my communiqué that we are in excess of 55 billion US, the highest number in over 18 years,” he said.

Diaspora remittances support resilience

Cardoso attributed part of the improvement to diaspora remittances. “In addition to that, and something that has also contributed to that is the whole issue of diaspora remittances, which you all hear me making reference to, and I’ve been doing so for such a long time, and I will continue to, because it has served a very helpful process in building up our resilience and building up our buffers,” he said.

CBN has introduced measures to deepen remittances, including the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account. These enable non-resident Nigerians to remit foreign earnings and manage or invest funds in Nigeria.

Cardoso linked the improved external position to foreign exchange market stability and renewed confidence in financial markets. “When we look at the capital markets, where is it coming from? It’s coming from the stability in the foreign exchange markets,” he said. He added that the improvement was one factor giving the MPC confidence to reset the monetary policy framework.

MPR reset is not easing

CBN clarified that resetting the MPR to 23 per cent does not constitute monetary policy easing. Cardoso said the changes were intended to strengthen monetary policy transmission and reinforce the MPR as the primary signal of monetary policy.

“The MPC emphasised that the recalibration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework,” the committee said.

Cardoso said the reset was necessary because existing transmission was not working as effectively as the bank wanted. “We have the firm belief that it has not been working as effectively as it should, the disinflation process is ongoing, and that’s a very positive thing”, he said.

He said the decision was supported by macroeconomic stability, including lower inflation, improved external reserves, reduced foreign-exchange pressures, and stronger investor confidence. He said previous restrictive measures achieved their objectives and the reset was designed to make the framework work more effectively.

He repeatedly cautioned against interpreting the MPR reset as an easing cycle. “The tight thing that we have done, in our view, has done its job. It has worked. The policy tools we have used have worked. We will stay on the course which has been a restrictive one for as long as we have to, and that’s why I re-emphasise that you should not see this as an easing, it’s a reset and a recalibration. That is all it is,” he said.

For the naira, the stronger reserves and current account surplus support foreign exchange stability, though the MPC insists the MPR reset is not an easing cycle.