Nigeria’s gross external reserves increased by $295.35 million in October 2026, bringing the country’s total foreign reserves to approximately $55.22 billion, despite a significant slowdown in the pace of accumulation.
Data from the Central Bank of Nigeria (CBN) showed that the reserves rose from $54.93 billion at the end of September to $55.22 billion on October 30.
The latest increase represents a continuation of Nigeria’s reserve accumulation trend, although it is the smallest positive monthly gain recorded so far this year.
The development comes amid efforts by the Federal Government and the CBN to strengthen the country’s external financial position, improve foreign exchange liquidity and stabilise the naira.
A review of the reserve movements showed that Nigeria recorded its strongest monthly increase in February, when reserves grew by approximately $3.41 billion.
However, the country experienced consecutive declines in March and April, losing approximately $455.52 million and $874.45 million, respectively.
The reserves subsequently recovered in May, adding about $1.22 billion, while June recorded an increase of approximately $1.88 billion.
July witnessed a more modest improvement of $464.87 million, before reserves gained another $1.88 billion in August. September also recorded an increase of approximately $1.12 billion.
October’s $295.35 million addition, however, signals a considerable moderation in the pace of foreign exchange reserve accumulation.
The reserves opened October at approximately $54.95 billion on October 2, gradually increased during the month and reached a peak of about $55.26 billion on October 27 before closing at $55.22 billion.
Despite the slower growth, analysts consider the country’s reserve position above the $55 billion threshold an important buffer against external economic shocks.
Foreign reserves are particularly important to Nigeria because they provide resources for international transactions, import payments, external debt obligations and interventions in the foreign exchange market.
Meanwhile, Nigeria’s net foreign reserves have also recorded significant improvement, reportedly reaching a record $46 billion.
Unlike gross reserves, net reserves take into consideration certain short-term foreign currency liabilities and other adjustments, offering another perspective on the country’s available external financial resources.
However, the improvement in gross reserves has not entirely eliminated pressure on the naira.
The Nigerian currency weakened from N1,329.50 per dollar at the end of September to approximately N1,346 per dollar on October 30, reversing about 42 per cent of the gains recorded between July and September.
The development highlights the challenge of translating stronger external reserves into sustained exchange rate stability.
For Nigeria, sustaining reserve growth will depend on stronger foreign exchange earnings, improved export performance, increased foreign investment and a reduction in excessive dependence on imports.
The latest figures offer some encouragement for the country’s external financial outlook, but the slower October accumulation suggests that maintaining the momentum will remain a significant challenge for monetary authorities.
