Nigeria’s external reserves have surged to $46.01 billion as of January 22, 2026, the highest level since March 2018 signaling stronger foreign exchange buffers amid ongoing macroeconomic reforms.
This represents a $406.25 million (1.12%) increase from the $45.5 billion recorded at the close of 2025.
The rise followed a strong rebound in 2025, when reserves grew by $4.62 billion (11.3%), despite volatility in global crude oil prices.
Nigeria’s foreign exchange earnings remained heavily reliant on crude oil, which accounted for about 90% of forex inflows.
As of January 22, 2026, crude oil traded at $63.21 per barrel, slightly below the 2026 budget benchmark of $64–$64.85.
Analysts attributed the reserve build-up to multiple factors, including improved crude oil output, better governance at the Nigerian National Petroleum Company Limited (NNPCL), rising foreign exchange inflows from autonomous sources among others.
Mr. David Adnori, Vice Chairman of Highcap Securities, noted that these developments reflected structural improvements in Nigeria’s economic management, especially in the oil and gas sector, and growing investor confidence from broader macroeconomic reforms.
Despite the increase in reserves, bank credit to Nigeria’s private sector fell by 2.8% year-on-year, dropping N2.2 trillion to N75.8 trillion in 2025 from N78.02 trillion in December 2024.
The decline was largely attributed to the Central Bank of Nigeria’s (CBN) sustained monetary tightening, with elevated interest rates and restricted liquidity aimed at curbing inflation and stabilising the naira.
Cordros Capital noted that reinforced limits on banks’ loans-to-deposits ratios could encourage commercial banks to expand lending, supporting growth in the short to medium term.
The CBN has also highlighted that private sector credit remains growth-enhancing, even amid structural and macroeconomic challenges.
Nigeria’s economic landscape thus presents a paradox of strengthening reserves alongside tightening domestic credit, reflecting the delicate balancing act of stabilizing the naira while supporting private sector growth.
