Nigeria’s external reserve is projected to rise to $51.04 billion in 2026, supported by stronger oil earnings, foreign exchange (FX) market reforms, and improved external inflows.
This is according to the Central Bank of Nigeria’s (CBN) 2026 Macroeconomic Outlook for Nigeria.
This represents a notable increase from the estimated $45.01 billion in 2025 and signals expectations of stronger external buffers and easing pressure in the foreign exchange market.
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The apex bank said the outlook reflects higher oil revenues, increased bond issuance, sustained diaspora remittances, FX market reforms, and expanded domestic refining capacity.
In its outlook, the CBN said external reserves are expected to reach $51.04 billion in 2026, up from $45.01 billion in 2025, as reduced FX market pressure supports reserve accumulation.
“The external reserves is projected at US$51.04 billion in 2026, compared with US$45.01 billion in 2025. The external reserves is expected to be boosted by reduced pressure in the FX market based on the anticipated rise in oil earnings, sovereign bond issuance, and diaspora remittance inflow,” the apex bank stated.
The CBN added that reforms in the FX market would improve efficiency and transparency, narrow the premium between the Nigerian Foreign Exchange Market (NFEM) and Bureau De Change (BDC) rates, and help sustain exchange rate stability.
The apex bank linked the positive reserve outlook to expanded domestic refining, notably the Dangote Refinery’s planned capacity increase to 700,000 bpd in 2025 and a longer-term target of 1.4 million bpd.
According to the CBN, increased local refining would reduce Nigeria’s dependence on imported petroleum products, lowering demand for foreign exchange and easing pressure on external reserves.
This follows years of FX shortages caused by high import costs, fuel subsidies, and weak inflows, prompting reforms to unify rates, improve price discovery, and restore investor confidence.
If achieved, the projected rise in external reserves would strengthen Nigeria’s ability to meet external obligations, improve import cover, and provide a stronger buffer against external shocks.
A more stable FX environment, supported by higher reserves and improved market transparency, could also enhance investor confidence, attract foreign capital, and support broader macroeconomic stability in the medium term.
Recall that Nigeria’s external reserves have crossed the $45 billion mark. The last time Nigeria’s reserves reached this territory was July 23, 2019, when they stood at $45.04 billion.
