Nigeria’s FX reserves rise to $49.34bn as naira holds firm amid stable market conditions

Nigeria’s gross official foreign reserves recorded another week of growth, reinforcing confidence in the country’s external position amid improving foreign exchange market stability.

According to data released by the Central Bank of Nigeria (CBN), the nation’s FX reserves increased by approximately $359.84 million week-on-week to close at $49.34 billion as of May 26, 2026, compared with $48.98 billion recorded at the end of the previous week.

Analysts attributed the sustained reserve accretion to steady oil-related inflows and relatively stable crude oil production levels, which continue to support Nigeria’s external liquidity buffer and strengthen investor confidence in the economy.

The continued improvement in reserves also comes amid ongoing reforms in the foreign exchange market aimed at enhancing liquidity and reducing volatility in the naira exchange rate.

Despite the positive trend, market watchers warned that downside risks remain, particularly from elevated foreign exchange demand pressures and the possibility of portfolio outflows triggered by uncertainties in the global financial environment.

Meanwhile, the naira posted a marginal appreciation against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) window during the review period.

The domestic currency strengthened by 0.16 per cent week-on-week, gaining ₦2.20 against the dollar to close at ₦1,373.25/US$, compared with ₦1,375.45/US$ recorded at the close of the preceding week.

CBN data further showed that the naira traded within a relatively narrow range of ₦1,372.00 to ₦1,377.00 per dollar, reflecting moderate pressure but overall resilience and stability in the foreign exchange market.

Analysts expect the naira to remain broadly stable in the near term, supported by sustained FX inflows, improved market liquidity, and stronger reserve buffers.

However, intermittent volatility may persist due to the currency’s sensitivity to demand and supply dynamics, as well as evolving global market conditions.

The latest reserve growth is expected to provide additional support for Nigeria’s import cover, external obligations, and broader macroeconomic stability as authorities continue efforts to stabilise the foreign exchange market and attract foreign capital inflows.