Naira gains as external reserves hit new high of $50.04bn

The naira strengthened against the dollar ending the week strong as Nigeria’s gross external reserves climbed to a record $50.04 billion, reinforcing investor confidence and boosting the Central Bank of Nigeria’s (CBN) capacity to support the local currency.

The latest reserve level slightly surpassed the previous peak of $50.03 billion recorded on March 11, 2026, according to data published on the CBN website, marking a fresh high in the country’s external buffers.

Data from the CBN showed that the naira closed at N1,362.21/$1 on Friday at the Nigerian Foreign Exchange Market (NFEM), representing an appreciation of N11.04, or 0.8 percent, compared to N1,373.25/$1 recorded on Friday of the previous week.

However, on a day-on-day basis, the local currency weakened slightly by 0.25 percent from N1,358.75/$1 traded on Thursday.

Over the five trading days, the naira gained 0.34 percent, strengthening from the week’s opening rate of N1,366.79/$1 to close at N1,362.21/$1 on Friday.

Activity at the NFEM remained robust, with 1,420 deals executed and total turnover reaching $2.51 billion during the week. The interbank segment of the foreign exchange market accounted for $683.22 million in turnover across 679 deals.

In the parallel market, also known as the black market, the naira remained unchanged at N1,385/$1 throughout the week. As a result, the gap between the official and parallel market exchange rates widened slightly to N23, from N18 recorded on Thursday.

Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet external obligations, continued their upward trajectory, crossing the $50 billion threshold.

The country’s foreign reserves stood at $50.04 billion as of June 4, 2026, representing a 3.56 percent increase from $48.32 billion recorded on May 7, 2026, according to data published on the CBN website.

At the conclusion of the 304th Monetary Policy Committee (MPC) meeting in February 2026, the CBN reported that gross external reserves had risen to $50.45 billion, strengthening confidence in Nigeria’s foreign exchange position and signalling improved liquidity conditions.

Olayemi Cardoso, governor of the CBN, said the reserve level was sufficient to provide about 9.68 months of import cover, offering a stronger buffer against external shocks.

Cardoso attributed the growth in reserves to higher export earnings and increased remittance inflows, which have supported foreign exchange liquidity and renewed investor confidence. He added that the apex bank remained committed to policies that would sustain reserve growth.

“I believe that as long as we are able to continue in this particular manner, you will see a regular accretion to our reserves,” Cardoso said. “So maybe now we are saying that it is the highest in 13 years. Next time, we hope to say it is the highest in 15 years.”

At the end of December 2025, the apex bank projected that external reserves would rise to $51.04 billion in 2026, driven by easing pressure in the foreign exchange market, stronger oil receipts, and sustained inflows from remittances and foreign portfolio investments.

The latest reserve position suggests progress toward that target, reflecting the impact of tighter monetary policy, improved foreign exchange liquidity, and stronger capital inflows.