Nigeria's Gross External Reserve Drops Slightly to $49.49 Billion – CBN

Nigeria's economic resilience is underscored by the Central Bank of Nigeria's (CBN) latest figures, which place the nation's gross external reserves at a robust $49.49 billion as of mid-May 2026. This substantial buffer provides a critical safety net, offering an import cover of over nine months for both goods and services. The CBN, through Governor Olayemi Cardoso, has emphasized that these reserves remain strong, a vital indicator of economic stability amidst global uncertainties.

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The non-oil sector grew by 3.99 per cent year-on-year in the fourth quarter of 2025 from 3.91 per cent in the preceding quarter, driven by key activities in the services sector, including information and communication, and transportation and storage activities.

The positive economic narrative is further bolstered by recent performance data. The fourth quarter of 2025 witnessed commendable growth in key sectors. The non-oil sector expanded by 3.99% year-on-year, driven significantly by the services industry, including information and communication, and transportation and storage. Concurrently, the oil sector saw an uptick of 6.79%, attributed to improved refining activities in the downstream segment. This dual-sector growth contributed to a real GDP expansion of 4.0% in the same quarter, signaling a healthy and diversifying economy.

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Growth in the oil sector also increased to 6.79 per cent in the fourth quarter of 2025 from 5.84 per cent in the previous quarter on the back of improved refining in the downstream sector.

Governor Cardoso highlighted that these strong external reserves are instrumental in reinforcing investor confidence in Nigeria's economy and supporting exchange rate stability. While acknowledging the projected moderation in global growth for 2026 due to geopolitical tensions and tighter financial conditions, and the anticipated rise in global inflation, the CBN remains optimistic. The bank's Monetary Policy Committee (MPC) has maintained its stance, signaling a commitment to managing inflation and fostering a stable economic environment. This strategic management of reserves and focus on sectoral growth positions Nigeria favorably to navigate the complexities of the international economic landscape.

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Gross external reserves remained robust at $49.49 billion as of 15 May 2026 compared with $48.35 billion at the end of March 2026, sufficient to cover 9.04 months of imports for goods and services.