Nigeria’s external reserves have climbed to $46.7 billion, the highest level in several years.
The latest reserve build-up is being supported by robust foreign exchange inflows from offshore investment, rising participation in local securities markets, and renewed interest in Nigeria’s Eurobond programmes.
The stronger reserve buffer has helped stabilize market liquidity and reduced volatility in the official foreign exchange market in recent weeks.
Foreign portfolio inflows have surged as global investors take advantage of attractive returns in Nigeria’s fixed-income market, where elevated domestic interest rates continue to deliver some of the highest yields globally.
Market participants say the widened rate differential compared to advanced economies has enhanced Nigeria’s risk-adjusted investment profile.
Analysts also cite improving sentiment toward the naira, supported by a firmer supply of foreign currency from external funding channels and broad investor re-entry into Nigeria’s debt market.
The result has been a more orderly trading environment and a reduced level of price pressure on the national currency in both the official and parallel FX windows.
International debt markets have similarly demonstrated renewed appetite for Nigerian instruments, with the country’s most recent Eurobond issuance attracting strong demand from global institutional investors.
The oversubscription of the offer further affirmed confidence in Nigeria’s credit outlook and its reform-anchored economic strategy.
Market experts note that the stronger reserve position provides the Central Bank of Nigeria (CBN) with greater capacity to support liquidity and respond more effectively to pressure points in the FX market when necessary.
A healthier level of reserves also contributes to improved sovereign risk perception, aiding capital mobilisation and lowering long-term borrowing risks.
In addition, moderating inflation and early evidence of price stability are boosting expectations for further alignment between monetary policy and the country’s broader growth objectives.
Investors are closely watching potential adjustments from the Monetary Policy Committee (MPC) as authorities balance the need for continued foreign inflow support with long-term inflation management.
With FX reserve levels now trending upward and investor engagement strengthening, financial analysts anticipate more stable pricing conditions for the naira as the country moves into the final quarter of the year.
However, they caution that sustained progress will remain dependent on security improvements, policy consistency, and ongoing openness to foreign capital.