Foreign Reserves Hit $49.58bn as CBN Strengthens Economic Buffers

Nigeria’s external reserves recorded a significant increase in May 2026, rising by approximately $1.22 billion to close the month at $49.58 billion, according to the latest figures released by the Central Bank of Nigeria (CBN).

The new data show that the country’s gross external reserves climbed from $48.36 billion at the end of April to $49.58 billion by May 29, representing a month-on-month growth of about 2.5 per cent.

The development further strengthens Nigeria’s foreign exchange position and brings the country within touching distance of the $50 billion reserve threshold, a level not seen in recent years.

The steady rise in reserves reflects improving foreign exchange inflows, sustained economic reforms and continued efforts by monetary authorities to stabilise the foreign exchange market.

Throughout May, the reserves maintained an upward trajectory, crossing the $49 billion mark on May 25 before extending gains towards the end of the month.

Economic analysts say the growth enhances Nigeria’s capacity to meet external obligations, defend the naira against excessive volatility and provide confidence to investors monitoring the country’s macroeconomic fundamentals.

A year-on-year comparison reveals even stronger performance.

The latest reserve figure of $49.58 billion represents an increase of approximately $11.11 billion compared to the $38.47 billion recorded during the same period in 2025.

This translates to an annual growth rate of nearly 29 per cent.

The improvement is even more pronounced when compared with May 2024, when external reserves stood at $32.70 billion, indicating an increase of about $16.88 billion within two years.

The CBN has repeatedly highlighted the importance of maintaining strong reserve buffers as part of broader efforts to support exchange rate stability, improve investor confidence and strengthen Nigeria’s external sector.

The growth in reserves has coincided with relative stability in the foreign exchange market.

At the official market, the naira closed May 2026 at approximately N1,372 to the dollar, compared to N1,585.50 recorded during the corresponding period in 2025.

The reserve build-up follows a series of foreign exchange reforms implemented by the CBN under the administration of President Bola Ahmed Tinubu, alongside a tight monetary policy stance designed to curb inflationary pressures and preserve market confidence.

Financial experts believe that sustaining the current momentum could further improve investor sentiment, strengthen Nigeria’s credit profile and provide greater resilience against global economic uncertainties.

With reserves now approaching the $50 billion benchmark, attention will increasingly focus on whether the country can maintain the pace of accumulation while supporting economic growth and exchange rate stability.