Nigeria’s gross external reserves have climbed to $42.407 billion, their highest level in six years, according to the latest data released by the Central Bank of Nigeria (CBN). The figure represents an increase of roughly $5.2 billion since July and a marginal rise from $42.353 billion recorded on September 30.
Despite several rounds of foreign exchange (FX) interventions aimed at stabilizing the naira in the official market, the nation’s reserves have continued to appreciate. Analysts attribute this upward momentum to stronger oil receipts, improved export earnings, and remittance inflows from Nigerians abroad.
Industry reports indicate that Dangote Refinery’s export proceeds and renewed participation of foreign portfolio investors (FPIs) in the Nigerian economy have also bolstered the reserves.
According to data from the CBN, the current level marks the highest reserve balance since September 2019, signaling a return of foreign investor confidence in Nigeria’s macroeconomic direction.
Analysts at TrustBanc Financial Group Limited project that the reserves could reach $45 billion before year-end, driven by increased capital inflows and steady oil export performance.
Nigeria’s foreign reserves had closed the first half of the year at $37.21 billion, following heavy FX interventions in Q1 and Q2. However, the nation’s improved fiscal discipline and transparency in FX operations under the current CBN leadership have restored investor trust.
TrustBanc analysts noted that the difference between the current CBN management and previous leadership lies in policy transparency and investor freedom, particularly the ability of FPIs to exit the market without restrictions.
“The policy shift has enhanced sentiment,” the firm said. “The apex bank’s decision to fund investor exits — selling over $2.75 billion within two months — was a significant confidence boost.”
Following the naira reform, several international rating agencies have revised Nigeria’s outlook positively, citing better foreign reserve management and policy consistency as key drivers.
. The figure represents an increase of roughly $5.2 billion since July and a marginal rise from $42.353 billion recorded on September 30.){kind=link}