Nigeria Economic Update, Issue 25

According to the Central Bank of Nigeria (CBN), on 18 June 2026, national gross reserves reached US$51.04 billion, surpassing the US$51 billion mark and hitting a 17 year high. The last time the reserves reached US$51 billion was on 20 January 2009, when it stood at US$51.07 billion. The upward ascent throughout June 2026 was remarkably consistent. Beginning the month at US$49.80 billion on June 1, the reserves climbed continuously day after day. On June 18, 2026, gross reserves officially reached the critical milestone, reaching $51.04 billion. By June 30, reserves peaked at an impressive US$51.45 billion. As expected, the exchange rate remained relatively stable in June 2026, trading between ₦1,356 and ₦1,384 per US$ at the Nigerian Foreign Exchange Market (NFEM), with reserves providing a temporary buffer for the naira. This monumental breakthrough bolsters national creditworthiness, enhances international investor confidence, and enhances support against external economic shocks. Rising oil prices tied to the US Israel–Iran conflict contributed to the uptick in the nation’s reserves. To sustain reserve growth beyond the conflict, the government should diversify external inflows, including through expanding non-oil export capacity, addressing insecurity to boost investors’ confidence, and ensuring reserves are supported by sustainable, long-term drivers rather than temporary shocks.