Economists have praised the Central Bank of Nigeria (CBN) following the rise in the country’s external reserves to a record $50.04 billion, describing the development as a positive signal for economic stability, investor confidence, and exchange-rate management.
Nigeria’s gross external reserves climbed to $50.04 billion on June 5, 2026, slightly surpassing the previous record of $50.03 billion recorded on March 11, according to data published by the apex bank.
Speaking on the development, renowned economist and Co-founder of the Lagos Business School, Patrick Utomi, commended the CBN for sustaining reserve growth despite global economic uncertainties and ongoing external obligations.
He, however, noted that government efforts should extend beyond reserve accumulation to addressing structural challenges that continue to hinder investment inflows.
According to Utomi, improving security remains critical to unlocking Nigeria’s economic potential. He advocated constitutional reforms that would allow states to establish their own police forces, arguing that stronger local security architecture could help curb insecurity and attract more investment.
He also called for increased investment in mechanised agriculture and agricultural value chains, stressing the need for policies that support farmers through compensation schemes for crop losses and strategic produce off-take programmes to reduce post-harvest waste.
Such measures, he said, would strengthen food security, support local industries with raw materials, and drive broader economic growth.
Also reacting, Tunde Adeoye, a lecturer in Economics at the University of Lagos, described the reserve growth as evidence of Nigeria’s improving external liquidity position despite debt-servicing commitments.
He noted that the reserve level provides a vital buffer against external shocks and offers significant import cover for the country’s goods and services needs.
Adeoye said the stronger reserve position reflects improved macroeconomic stability and enhances the CBN’s capacity to support the naira and maintain confidence in the foreign exchange market.
While applauding the achievement, he urged policymakers to complement macroeconomic gains with measures that improve the business environment and stimulate productive sectors of the economy.
He specifically called for lower lending rates to make credit more accessible to businesses, particularly small and medium-sized enterprises (SMEs), which he described as critical drivers of employment, innovation, and economic expansion.
The record reserve level is expected to strengthen Nigeria’s ability to meet external obligations, support exchange-rate stability, and provide a cushion against global economic shocks, even as policymakers continue efforts to sustain growth and tame inflation.
