Nigeria’s External Reserves Hit $53.11bn, Highest in 17 Years

By Adedapo Adesanya

Nigeria’s external reserves have reached $53.11 billion, the latest data from the Central Bank of Nigeria (CBN) has shown. This is the highest level the country’s forex reserves have reached in more than 17 years and brings Nigeria close to the record levels last seen in 2009.

The apex bank data showed that reserves increased by $3.15 billion in 82 days from $49.96 billion on June 3 to $53.112 billion on August 24.

The steady buildup gathered pace in July and August, with reserves rising from $51.53 billion on July 3 to $52 billion on July 27. The figure subsequently climbed to $52.86 billion on August 21 before crossing the $53 billion mark.

At $53.11 billion, the current reserve position is about $142 million below the $53.25 billion recorded on January 12, 2009.

The development represents a significant improvement in Nigeria’s external position, particularly as the country continues efforts to strengthen foreign exchange liquidity and stabilise the Naira.

Market analysts noted that the boost in reserves was triggered by stronger Dollar inflows, including earnings from crude oil exports, while noting that the sustainability of the buildup would depend on the continued inflow of FX into the economy.

Higher crude oil prices can provide additional Dollar earnings for Nigeria, given the country’s dependence on oil exports as a major source of foreign exchange. The reserve accumulation has also coincided with relative stability in the FX market.

The increase provides the country with a stronger external buffer and could support confidence in the FX market by improving the authorities’ capacity to meet external obligations and respond to periods of heightened Dollar demand.

On Thursday, the Naira further improved its value against the US Dollar by N5.00 or 0.37 per cent to N1,338.59/$1 in the official market.

The continued growth in reserves comes as the CBN maintains its focus on monetary and foreign exchange policies aimed at improving macroeconomic stability and supporting confidence in the Naira.