Nigeria’s External Reserves Rise to $49.58 Billion in May 2026

Nigeria’s external reserves increased by $1.22 billion in May 2026, reaching $49.58 billion, according to the latest data from the Central Bank of Nigeria (CBN). This growth marks a month-on-month increase of about 2.5%, highlighting a steady improvement in the country’s foreign exchange position.

Reserve Growth Highlights

The CBN data shows that reserves rose from $48.36 billion at the end of April to $49.58 billion by May 29, 2026. The upward trend was consistent throughout the month, with the reserves crossing the $49 billion mark on May 25.

This growth reflects:

1. Stronger foreign exchange inflows.

2. Ongoing economic reforms.

3. Monetary policies aimed at stabilising the FX market.

Year-on-Year Performance

Nigeria’s reserves have also improved significantly compared to the previous year:

• May 29, 2025: $38.47 billion
• May 2026: $49.58 billion

This represents an increase of $11.11 billion, or roughly 29% growth over 12 months. Compared to May 2024, when reserves stood at $32.70 billion, Nigeria has added $16.88 billion over two years.

CBN Governor noted that the “strong buffer continues to reinforce investor confidence and support exchange rate stability,” highlighting the positive impact of policy reforms.

Impact of Foreign Exchange Reforms

The growth in reserves comes after monetary reforms under President Bola Ahmed Tinubu’s administration. These reforms have improved the flow of foreign currency into the country, strengthened the external sector, and helped stabilise the naira.

Naira performance: The naira closed May 2026 at N1,372/$ at the official market, compared to N1,585.50/$ in May 2025, reflecting improved currency stability.

Tight monetary policy: The CBN has maintained policies to preserve the exchange rate and contain inflation.

Monthly Trends

Throughout May 2026:

• May 4: Reserves at $48.34 billion
• May 25: Crossed $49 billion
• May 29: $49.58 billion

This shows consistent month-long growth and places Nigeria closer to the $50 billion threshold, a milestone not achieved in recent years.

Historical Context

• March 2026: Reserves fell slightly from $50.08 billion on March 12 to $49.61 billion by March 23
• January 2026: Reserves increased by $509 million within the first 22 days

Over the past year, these trends show the resilience of Nigeria’s external reserves and the effectiveness of reforms in attracting foreign currency.

Economic Significance

Higher external reserves benefit Nigeria in several ways:

1. Support for the naira: Helps maintain exchange rate stability and reduce volatility

2. Investor confidence: Boosts foreign investment due to stronger macroeconomic indicators

3. Capacity to meet external obligations: Ensures Nigeria can pay for imports, debt, and other international commitments

The consistent growth of reserves also indicates strengthening confidence in Nigeria’s macroeconomic outlook and the ability to withstand external shocks in global markets.