Nigeria’s foreign exchange reserves have climbed to $55.25 billion, the highest level in about 18 years, as the Central Bank of Nigeria (CBN) announced a series of positive external-sector indicators and cut the benchmark interest rate from 26.5 per cent to 23 per cent.
The latest figures were contained in the communiqué issued after the 307th meeting of the Monetary Policy Committee (MPC) on Tuesday. The development marks another major shift in the CBN’s monetary policy direction under Governor Olayemi Cardoso, following sustained improvements in the country’s external position.
According to the CBN, the reserves stood at $55.25 billion as of September 18, 2026, providing enough cover to finance approximately 11.3 months of imports of goods and services.
The apex bank also reported a sharp improvement in Nigeria’s current account position, with the surplus rising by 67.92 per cent, from $4.49 billion in the first quarter of 2026 to $7.54 billion in the second quarter.
Similarly, the country’s balance of payments surplus increased from $2.38 billion in Q1 to $3.51 billion in Q2, reflecting a stronger external position during the period.
The latest reserve figure extends the steady build-up recorded in recent months. CBN data had put Nigeria’s reserves at $54.08 billion in early September, already the highest level since 2008.
Commenting on the development, Cardoso said the improvement in Nigeria’s external position had contributed to greater stability in the foreign exchange market.
He said foreign exchange pressures had “receded significantly” as the country continued to rebuild its external buffers.
The CBN’s latest monetary policy decision also saw the Monetary Policy Rate (MPR) reduced by 350 basis points, from 26.5 per cent to 23 per cent.
The reduction, announced at the end of the MPC meeting, represents a significant easing of monetary conditions after the CBN maintained the rate at 26.5 per cent at its previous meeting.
The CBN has increasingly pointed to stronger reserves, improved foreign exchange market conditions and reforms to the monetary framework as part of efforts to restore stability and confidence in the economy.
The latest figures therefore provide fresh indicators of an economy undergoing significant monetary and external-sector adjustments under the Tinubu administration, although the impact of these improvements on businesses, households, inflation and living standards remains an important part of the broader economic picture.
