Nigeria's external reserves have climbed to $50.12 billion, the strongest level in more than 17 years, after growing 30.9 per cent year-on-year from $38.28 billion recorded a year ago.
The reserves added roughly $11.84 billion to the nation's stock within 12 months and crossed the $50 billion mark for the first time since January 2009, when they stood at $50.58 billion. The figure remains short of the all-time peak of $64.85 billion recorded in August 2008, but represents a remarkable recovery from the weaker levels that persisted through much of the past decade.
The build-up has been steady and sustained. From $37.21 billion at the end of June 2025, reserves climbed to $39.36 billion in July, then to $41.31 billion in August. The upward march continued through the final months of 2025, reaching $43.20 billion in October, $44.67 billion in November, and $45.50 billion by year-end. The pace accelerated in early 2026, with reserves surging to $49.69 billion by February 27 before settling at $50.12 billion on June 5.
Within the past 12 months, reserves touched a low of $37.18 billion on July 3, 2025, meaning the gap between the lowest and highest points was about $12.94 billion. The temporary dips in March and April, when reserves fell to $49.24 billion and $48.36 billion respectively, proved short-lived as inflows returned.
The stronger reserve position improves Nigeria's ability to weather external shocks and support the naira in the foreign exchange market. Stronger reserves typically signal improved investor confidence and reduce pressure on the country's balance of payments position.
Separately, investors demonstrated renewed appetite for short-term fixed income instruments yesterday, committing N655.88 billion to Open Market Operation bills as high yields attracted fresh demand. OMO bills accounted for nearly three-quarters of the N882.35 billion in total fixed income turnover recorded across 346 trades.
The OMO segment recorded 127 trades involving 15 participants, underscoring sustained interest in short-dated securities. Treasury bills pulled in N74.86 billion across 132 trades from 23 participants, while Federal Government of Nigeria bonds attracted N121.61 billion from 81 transactions. Sukuk instruments recorded N30 billion across six deals.
The July 28, 2026 OMO bill emerged as the most actively traded instrument, recording N202.25 billion in transactions across 25 deals, followed by the June 23, 2026 OMO bill. The concentration of investor interest in these near-term maturities reflects the search for yield in a market where short-dated securities continue to offer competitive returns.
