. Total inflows into the reserves amounted to $692.28 million in September alone- CBN
. Analysts cautioned that persistent challenges such as high inflation, heavy debt obligations, and widespread poverty remain hurdles to long-term economic recovery.
By Olawale Lamina
Nigeria has recorded an increase in its gross external reserves, which currently stands at $42 billion and the highest in the last six years, based on the atest data released by the Central Bank of Nigeria, CBN.
Nigeria’s external reserves last stood at the current level in September 2019.
According to the analysis by the apex bank, the increase is not unconnected with stronger hydrocarbon export revenues cum steady inflow of foreign exchange, coming on the back of a surge recorded in August. At that time, Nigeria’s reserves hit approximately $41 billion — the highest in nearly four years — crossing the $40 billion threshold earlier in the month.
The CBN noted that the August milestone represented a 44-month high since 2021.
The apex bank also highlighted the fact that total inflows into the reserves amounted to $692.28 million in September alone.
It was observed that the recent rise is providing the apex bank with greater liquidity to stabilise the Naira, manage economic shocks, and attract investment.
Some analysts are optimistic that the upward trend will continue, offering a buffer for currency stability and boosting investors confidence, while cautioning that that persistent challenges such as high inflation, heavy debt obligations, and widespread poverty remain hurdles to long-term economic recovery.
The increase in reserves has coincided with gains in the local currency. The Naira appreciated by 0.91 per cent week-on-week in the official market, closing at N1,487.90 per U.S. dollar. This is the first time it has traded below the N1,500 mark since February 2025.
In the parallel market, the Naira strengthened by 1.05 per cent to an average of N1,521 per U.S. dollar.
It has been observed that rising government hydrocarbon revenues, strengthened by higher oil production, have also supported the currency’s performance.
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