Nigeria’s foreign exchange reserves have risen to $55.25 billion as of September 18, 2026, while the Central Bank of Nigeria (CBN) has cut its benchmark interest rate from 26.5 per cent to 23 per cent, citing improvements in the country’s external position and the need to reset its monetary policy framework.
The latest figures were contained in the communiqué of the 307th meeting of the CBN’s Monetary Policy Committee (MPC), held in Abuja on September 21 and 22.
The reserve level represents Nigeria’s highest in 18 years and provides approximately 11.3 months of import cover for goods and services, according to the CBN. The figure has continued to rise from $52.52 billion reported in July, when the apex bank said reserves provided about 11 months of import cover.
The CBN also reported a substantial improvement in Nigeria’s external accounts during the second quarter of 2026.
According to provisional balance-of-payments statistics, the country’s current account surplus increased by 67.92 per cent to $7.54 billion in Q2, compared with $4.49 billion in the first quarter. The Q2 figure was also higher than the $5.17 billion recorded in the corresponding period of 2025.
Nigeria’s overall balance-of-payments position also strengthened, with the surplus rising from $2.38 billion in the first quarter to $3.51 billion in the second quarter.
The improvement in the current account was supported by stronger export earnings, with total exports rising from $15.56 billion in Q1 to $20.08 billion in Q2. The goods account surplus also widened from $5.96 billion to $10.12 billion.
Crude oil exports increased to $9.39 billion, while natural gas exports rose to $3.63 billion. Exports of refined petroleum products and non-oil goods also increased during the quarter. Personal transfers, including diaspora remittances, rose by 9.81 per cent to $5.82 billion.
The CBN said the improvement in the country’s external position had contributed to greater stability in the foreign exchange market, with Governor Olayemi Cardoso noting that foreign exchange pressures had receded significantly as Nigeria rebuilt its external buffers.
The latest monetary policy decision also marks a significant adjustment after the MPC had retained the Monetary Policy Rate (MPR) at 26.5 per cent at its May and July meetings. The rate had previously been reduced from 27 per cent to 26.5 per cent in February.
The CBN described the latest move as an operational reset intended to strengthen monetary policy transmission and restore the MPR as the principal signal of monetary policy, rather than a fundamental change in the underlying policy stance.
Cardoso also said the CBN’s foreign exchange reforms had eliminated distortions associated with multiple exchange-rate windows. According to him, the previous system had resulted in losses equivalent to about three per cent of Nigeria’s GDP, while the adoption of a more unified, willing-buyer, willing-seller framework had improved transparency and allowed market forces to play a greater role in determining the exchange rate.
The CBN’s latest data provide indicators of stronger external balances, including higher reserves, an expanded current account surplus and a larger balance-of-payments surplus. However, the figures do not by themselves establish the overall impact of the Federal Government’s entire economic reform programme, as broader economic performance also depends on inflation, household purchasing power, employment, investment, production and other indicators.
The second-quarter balance-of-payments figures are provisional and may be revised as additional data become available.
The latest monetary policy decision comes as the CBN continues its transition towards an inflation-targeting framework and seeks to balance price stability, exchange-rate conditions, economic growth and financial-system stability.
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