CBN Reports Nigeria’s Reserves Rise to $52.52bn, Cover 11 Months of Imports

Nigeria’s gross external reserves have climbed to $52.52 billion, providing sufficient foreign exchange to finance approximately 11 months of imports of goods and services, according to the Central Bank of Nigeria (CBN).

The latest figures were disclosed on Tuesday in a communiqué issued after the 306th meeting of the Monetary Policy Committee (MPC), where members also voted to retain the Monetary Policy Rate (MPR) at 26.5 per cent. The CBN maintained that the country’s external position remains strong, despite growing global uncertainties.

According to the Committee, Nigeria’s gross external reserves rose from $50.47 billion at the end of May 2026 to $52.52 billion as of July 17, 2026. Higher receipts from crude oil taxes and third-party inflows drove the increase.

The CBN noted that the reserve level is significantly above the international benchmark of three months of import cover, providing a robust buffer against external shocks and supporting stability in the foreign exchange market.

Despite the improvement in Nigeria’s external position, the MPC said it maintained its cautious monetary policy stance due to heightened global uncertainty, particularly renewed hostilities in the Middle East and the risk of higher global energy prices feeding into domestic inflation.

The Committee observed that while headline inflation moderated slightly to 15.91 per cent in June 2026 from 15.93 per cent in May, global developments continue to pose upside risks to inflation.

Nonetheless, members noted that the Nigerian economy has remained largely resilient to external shocks, crediting reforms implemented by both fiscal and monetary authorities.

The MPC also acknowledged the Federal Government’s renewed commitment to stronger policy coordination with the CBN, noting that closer alignment between fiscal and monetary policies has helped moderate the impact of the Middle East crisis on the domestic economy and will further enhance macroeconomic stability.

Regarding domestic economic activity, the Committee reported that real Gross Domestic Product (GDP) grew by 3.89 per cent in Q1 2026, compared with 4.07 per cent in the previous quarter. Growth was largely supported by the non-oil sector, which expanded by 3.94 per cent, driven by improvements in telecommunications, financial services, trade, transportation, and other services.

Although growth in the oil sector slowed to 2.57 per cent from 6.79 per cent in Q4 2025 due to maintenance work on oil facilities, the MPC said recent indicators point to improving economic activity. The composite Purchasing Managers’ Index (PMI) rose to 50.1 points in June from 49.6 points in May, indicating a return to expansion.

The Committee also welcomed progress in the banking sector recapitalisation exercise, saying it has strengthened the resilience of the financial system, as reflected in key prudential and financial soundness indicators. However, it urged the CBN to sustain effective supervision to safeguard financial stability.

Looking ahead, the MPC projected that inflation would moderate further over the medium term, supported by continued exchange rate stability, the delayed impact of previous monetary tightening, and improved food supply during the harvest season. However, it warned that a prolonged escalation of the Middle East conflict remains the biggest threat to the outlook and stressed that the Bank stands ready to take appropriate policy actions should macroeconomic conditions deteriorate.

The next MPC meeting is scheduled for September 21 and 22, 2026.