External Reserves Rise Above CBN Target As Naira Strengthens Across FX Markets
- New data shows that Nigeria's external reserves increased to $51.06 billion, surpassing the CBN’s target
- The naira strengthened across FX markets, gaining N1.35 at the NFEM to N1,369.11/$ and N5 in the parallel market
- CBN MPC members have shared their views on the rising external reserves and the impact on naira
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's external reserves have increased to $51.06 billion, exceeding the Central Bank of Nigeria's (CBN) year-end target of $51.04 billion.
It has gained 32.62% compared to $38.50 billion in the same period in 2025.
The current reserve level provides the CBN with the buffer to support the naira and settle international obligations.
Source: Getty Images
Naira exchange rate
Data obtained from the CBN showed that the naira gained N1.35 in the Nigerian Foreign Exchange Market (NFEM), with the dollar rate closing at N1,369.11 on Monday, compared to N1,370.46 recorded last Friday.
BusinessDay reports that market activity in the interbank FX market on Monday also improved, with a 59.32% increase in deals executed, to 94, compared to 59 recorded on Friday.
Also, Interbank turnover improved by 63.47% to $65.21 million for Monday’s transactions.
In the parallel market, the dollar slips for the third consecutive day, now sold at N1,395, as the naira strengthens by N5 from the N1,400 exchange rate last Friday.
The latest rates have now narrowed the official rate-parallel rate differential to N31 on Friday.
CBN MPC members share thoughts on external reserves
In their personal statements following the 304th meeting in February 2026, members of the CBN’s Monetary Policy Committee expressed optimism that rising reserves will help strengthen the naira further.
For Aku Pauline Odinkemelu said:
"Current Gross external reserves offers about 10 months of import cover, supported by higher oil receipts and improved investor confidence. Also noteworthy is the CBN’s intense drive to diversify its gold holdings through increased locally-sourced gold (refined to international standards).
"The implementation of the newly-introduced Executive Order 9 and sustained FX-market stability are expected to further boost reserves."
Source: Getty Images
Bala Moh’d Bello also noted:
"Nigeria’s external position has strengthened markedly. This improvement reflects stronger export earnings, increased remittance inflows, and improved capital flows. The resulting stability in the foreign exchange market has significantly reduced exchange rate pass-through to domestic prices and bolstered investor confidence"
Emem Usoro also stated:
"The robust reserve position has supported exchange rate stability and contributed to gradual naira appreciation, helping reduce imported inflation and anchor inflation expectations."
Muhammad Sani Abdullahi added:
"Nigeria’s external sector outlook remains broadly positive with external reserves providing a buffer against shocks."
CBN explains stability in the FX market
Earlier, Legit.ng reported that the CBN said the naira’s recent stability was not the result of artificial support but a reflection of market forces following foreign exchange reforms and improved liquidity.
CBN Governor Olayemi Cardoso said reforms implemented over the past two years had made the FX market more transparent and driven by market conditions.
He added that improved communication between the CBN and market participants, the adoption of the “willing buyer, willing seller” framework, and the introduction of an electronic trading platform had reduced market distortions and limited speculative activities that previously pressured the exchange rate.
Source: Legit.ng
