The Central Bank of Nigeria (CBN) is closing in on its $51.04 billion year-end gross external reserves target, data from the apex bank’s website have shown.
At $51.035 billion external reserves position on June 18, the CBN needs additional $4.45 million accretion to hit December 31, 2026 target of $51.04 billion.
The current external reserves position marks the highest level in about 17 years, following stronger foreign exchange inflows and improved market conditions, impacting positively in the reserve position.
Nigeria’s external reserves, which provide the CBN with the capacity to support the local currency and meet external obligations, have continued to rise steadily.
External reserves movement analysis on CBN website showed that gross external reserves stood at $51,035,544,733.65, the highest level since January 20, 2009, when reserves hit $51.07 billion.
Further analysis showed that the liquid portion of the external reserves stood at $50,363,829,319.23 while the blocked portion stood at $671,715,414.42 on July 18, 2026.
In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve $51.04 nillionm external reserves target by December 31.
Analysts said the current reserves position reinforces the steady growth in Nigeria’s external buffers, with reserves gaining rising throughout June after recording significant growth in May.
The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves.
Yusuf said, ‘’Well, the outlook for me is positive because I don’t see anything derailing these reforms [forex reform, fuel subsidy etc. It is these reforms that have brought about stability.
CBN data further showed that Nigeria’s external reserves maintained a steady upward surge during the month. The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.
On June 15, reserves had increased further to $50.81 billion before rising to current position. The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.
The CBN Governor Olayemi Cardoso, had, in May, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”
The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso said.
The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, but he believed it was the right thing to do, and gave investors his word.
He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.”
“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated”. Cardoso explained that Nigeria needed to ensure that its integrity is maintained.