Nigeria’s Reserves Rise to $52bn as Inflation Falls to 15.9%

The Central Bank of Nigeria (CBN) has reported a landmark recovery in the nation’s financial buffers, with gross foreign reserves surging to $51.89bn, nearly reaching the $52bn mark as of mid-July 2026.

This multi-year milestone, according to the CBN data obtained on Thursday, represents a dramatic 45 per cent increase from the $35.70bn recorded during the same period in 2025, effectively doubling the foreign currency cushion since the critical lows of late 2016.

To put this recovery into historical context, Nigeria’s reserves plummeted to a critical low of $23.89bn in October 2016 amid a severe economic recession triggered by a collapse in global crude oil prices and systemic foreign exchange shortages.

The current accretion not only marks a complete departure from that era of fiscal strain but also surpasses the previous high-water mark of mid-June 2013, when reserves stood at approximately $48.47bn.

CBN officials attributed the rapid acceleration to daily gains over the past month, during which liquid reserves grew by over $1bn in just 30 days. On 15 June 2026, the reserves stood at $50.81bn before climbing to the current level. Of the current stock, a highly liquid $51.27bn remains fully accessible to meet the country’s immediate import and foreign exchange demands, with only a marginal 1.2 per cent ($621.7m) tied up in blocked funds.

The significant growth in reserves coincides with positive developments on the domestic price front, offering a dual boost to the macroeconomic outlook.

According to the National Bureau of Statistics, Nigeria’s headline inflation rate moderated slightly to 15.91 per cent year-on-year in June, down from 15.93 per cent in May. The cooling of consumer prices was largely driven by a notable deceleration in the core inflation basket, which dropped from 16.82 per cent to 15.92 per cent. Month-on-month inflation also tapered to 1.66 per cent, indicating that the intense price pressures of previous years are beginning to ease alongside a strengthening national balance sheet.

Analysts have welcomed the simultaneous improvement in external reserves and price stability as a sign of successful monetary policy interventions.

Commenting on the milestone, a financial analyst noted, “The combination of a near-$52bn reserve and moderating inflation proves that Nigeria is finally building a resilient fiscal shield while successfully cooling domestic price pressures.”

With the gross reserves now comfortably surpassing the strong peaks of 2013, the government’s current trajectory suggests a much-needed period of economic stabilisation is taking root.