Nigeria’s external reserves have surged to $54.08bn, their highest level since 2008, strengthening the country’s foreign exchange buffer and providing further support for the naira.

Data from the Central Bank of Nigeria showed that reserves reached $54.084bn on September 3, up $1.42bn from $52.66bn on August 19. The latest increase extends a sustained build-up in the country’s external assets. Reserves have risen by $8.52bn, or 18.7 per cent, from $45.56bn recorded on January 2.

The current level is the highest since December 2008, when Nigeria’s reserves stood at about $54.21bn. The acceleration has been particularly notable since late August. Reserves climbed from $53.11bn on 24 August to $53.30bn on 26 August, $53.51bn on 28 August and $53.81bn by 31 August.

They then rose to $53.90bn on 1 September and $53.99bn on 2 September before crossing the $54bn mark the following day.

Liquid reserves stood at $53.55bn, indicating that the bulk of Nigeria’s external reserves is readily available for conversion into cash and use in meeting foreign-exchange and external payment needs.

The latest reserve position is also $3.04bn above the CBN’s full-year 2026 projection of $51.04bn, suggesting that reserve accumulation has outperformed the central bank’s expectations.

CBN Governor, Olayemi Cardoso, has attributed the stronger reserve position to improved foreign exchange inflows, including receipts from crude oil-related taxes and third-party inflows.

The increase in reserves has coincided with stronger liquidity in the FX market and a recovery in the naira. The naira strengthened to N1,315/$ on Thursday, putting the currency on course for its strongest annual performance against the dollar in several years. It, however, weakened to N1,321/$ on Friday.

Improved FX conditions have also been reflected in international card transactions. GTBank’s dollar card rate was around N1,332/$, while the bank increased its quarterly international card spending limit to $40,000 from $20,000.

The naira’s recent gains represent a marked turnaround from the sharp depreciation that followed the 2023 FX reforms, which saw the currency come under significant pressure amid adjustments to the exchange rate regime.

Improved dollar supply, tighter monetary conditions and CBN measures to deepen the FX market have helped reduce some of the pressure on the currency.