Nigeria’s $46B Reserves Boost Economic Confidence
Atume Terfa
Nigeria’s gross external reserves surged to $46.11 billion as of January 28, 2026, marking the highest level in nearly eight years and providing roughly 14 months’ worth of import cover, according to the latest data from the Central Bank of Nigeria (CBN).
This represents an 18.6% increase from $38.88 billion in January 2025, driven by robust oil export receipts, rising diaspora remittances, and heightened foreign portfolio inflows following recent foreign exchange market reforms.
Economists say the record reserves provide a multi-layered buffer for the economy. The naira has seen modest appreciation, narrowing the gap between official and parallel market rates, while the ample reserves make Nigeria more resilient to sudden trade or currency disruptions.
Strong foreign exchange buffers also help dampen inflation by reducing the pass-through of exchange-rate fluctuations to domestic prices, easing input-cost pressure on businesses and shielding consumers from sharp price jumps. “This level of forex cover far exceeds conventional benchmarks and signals a marked improvement from past periods of tight liquidity,” analysts note.
Several factors have fuelled the surge in reserves. Improved repatriation of crude proceeds and higher oil export receipts have strengthened foreign inflows, while steps to unify FX rates and increase transparency have boosted investor confidence. Diaspora remittances and foreign portfolio investments channelled through official channels have further added stability. Careful FX management by the CBN, alongside structural reforms, has also played a key role in steadily building reserves despite global economic volatility.
While the reserves signal strong macroeconomic resilience, experts caution that sustaining this buffer through 2026—an election year—will require disciplined fiscal policy, continued FX reforms, and restraint in leveraging reserves for heavy market interventions.
The CBN projects that external reserves could climb further to around $51 billion, supported by higher oil earnings, diaspora inflows, and potential sovereign bond issuance. Nigeria’s record forex reserves not only highlight its strengthened foreign exchange credibility but also act as a strategic shield against external shocks, boosting investor confidence in Africa’s largest economy.
