At Over $46bn, Nigeria’s Rising Reserves Close-In On South Africa, Egypt

… FX Reserves Rebound Signals Improving Macroeconomic Stability-Experts

Nigeria has reinforced its standing among Africa’s largest economies as its external reserves climbed above $46bn, the highest level recorded in about eight years, according to data from the Central Bank of Nigeria (CBN).

The reserve position, reflected in CBN figures dated January 22, 2026, marks a sustained build-up of foreign exchange buffers since 2025 and places Nigeria firmly among the continent’s top reserve holders.

The milestone strengthens the country’s import cover, boosts confidence in the naira, and provides policymakers with greater flexibility to manage external shocks amid a volatile global environment.

The latest reserve level represents a significant turnaround from years of pressure caused by oil price volatility, rising import bills, foreign exchange backlogs, and the economic disruptions of the COVID-19 pandemic.

Nigeria last recorded comparable reserve levels in 2018, before a prolonged decline that saw buffers fall below $35bn at several points over the past decade.

Analysts say the rebound signals improving macroeconomic fundamentals and a gradual restoration of investor confidence, even as structural challenges persist.

The stronger reserve position is also seen as critical as the country approaches another election cycle, a period that historically tests fiscal discipline and external stability.

The recovery has been driven by a combination of improved crude oil production and export receipts, foreign exchange market reforms, and a reduction in fuel import dependency.

Higher oil output and better export performance have lifted dollar inflows, while recent FX reforms, including exchange-rate unification and tighter monetary conditions, have helped attract portfolio inflows and curb speculative pressures in the currency market.

In addition, lower fuel import demand, supported by growing domestic refining capacity, has eased one of Nigeria’s largest sources of foreign exchange outflows.

Remittance inflows and cautious reserve management by the CBN have also contributed to the steady accumulation, allowing buffers to rise despite persistent global uncertainties and tighter international financial conditions.

With reserves at $46bn, Nigeria now ranks competitively alongside Africa’s largest economies. South Africa maintains reserves above $55bn, supported by a diversified export base and deep financial markets, while Egypt operates within a similar range, buoyed by strong remittances, tourism earnings, and Suez Canal revenues.

Libya remains the continent’s largest reserve holder, with levels exceeding $70bn, largely underpinned by oil income.

Nigeria’s resurgence narrows the gap with these North and Southern African heavyweights and places it ahead of several regional peers, reinforcing its position as one of the continent’s economic anchors.

Economists caution, however, that sustaining the momentum will depend on consistent oil production, disciplined fiscal management, and continued commitment to foreign exchange reforms.

They note that while stronger reserves improve short-term stability, converting the gains into long-term macroeconomic resilience will require structural reforms that deepen non-oil exports, attract durable capital inflows, and reduce vulnerability to external shocks.