By Anita Dennis
After years of fluctuating foreign exchange buffers, recurring currency pressures and external sector vulnerabilities, Nigeria’s external reserves have climbed to their highest level in more than 17 years. The latest development represents a significant shift in the country’s external position and provides one of the clearest indicators yet of the improvement in reserve accumulation recorded over the past year.
Latest figures show that Nigeria’s gross external reserves rose to $50.12 billion as of June 5, 2026, compared with $38.28 billion recorded on the same date in 2025. The increase of approximately $11.84 billion translates to a year-on-year growth of 30.9 percent and pushes the country’s reserve stock above the $50 billion mark for the first time since January 26, 2009, when reserves stood at $50.58 billion.
The milestone places Nigeria’s reserves at their strongest level since the period immediately following the global financial crisis. Although the current position remains below the all-time record of $64.85 billion achieved on August 8, 2008, it nonetheless represents a substantial recovery from levels recorded across much of the past decade. At $50.12 billion, reserves are approximately $14.73 billion below the historic peak but significantly stronger than the positions that characterised many recent years.
What makes the latest achievement particularly notable is not merely the headline figure but the consistency of the upward movement that preceded it. Over the last twelve months, Nigeria’s reserves have followed a largely steady growth trajectory, reflecting a sustained build-up rather than a short-lived spike.
From $37.21 billion at the end of June 2025, reserves increased to $39.36 billion in July and crossed the $41 billion threshold by August, closing the month at $41.31 billion. The upward trend continued through September when reserves reached $42.35 billion before climbing further to $43.20 billion in October. By November, reserves had risen to $44.67 billion and closed the year at $45.50 billion.
The pace of accumulation accelerated during the first quarter of 2026. Reserves increased to $46.28 billion at the end of January and surged to $49.69 billion by February 27. Although a mild correction followed, with reserves easing to $49.24 billion in March and $48.36 billion in April, the decline proved temporary. The upward trend quickly resumed, with reserves rebounding to $49.58 billion by May 29 before advancing to $50.12 billion on June 5.
The scale of the movement becomes even clearer when viewed from the lowest point recorded during the period under review. On July 3, 2025, reserves stood at $37.18 billion. The rise to $50.12 billion therefore represents an increase of approximately $12.94 billion between the low and high points within a year.
The strengthening reserve position has emerged alongside heightened activity in Nigeria’s domestic fixed income market, where investors continue to seek opportunities in high-yield government securities.
Trading data from the Fixed Income Dashboard showed that total turnover across fixed income instruments reached N882.35 billion from 346 transactions. Open Market Operation (OMO) bills dominated market activity, accounting for N655.88 billion of total turnover and nearly three-quarters of all value traded during the session.
The strong preference for OMO instruments reflects continued investor appetite for short-term securities offering some of the highest yields available in the market. The segment recorded 127 trades involving 15 participants, making it the most active component of the fixed income market.
Among the various instruments traded, the July 28, 2026 OMO bill emerged as the most actively exchanged security, generating N202.25 billion across 25 deals. It was followed by the June 23, 2026 OMO bill, which recorded N100 billion in transactions from 10 trades. Other heavily traded securities included the October 13, 2026 OMO bill with N88.14 billion and the September 22, 2026 OMO bill with N87 billion in turnover.
Yields remained elevated across the segment. The June 23, 2026 and July 28, 2026 OMO bills closed at yields of 21.68 percent and 21.63 percent respectively, while yields across the broader market ranged between 18.53 percent and 21.68 percent depending on maturity.
Activity in the Treasury bills market was comparatively lower but remained concentrated in medium-dated instruments. The September 24, 2026 Treasury bill led activity with N16 billion traded across 32 deals, while the June 3, 2027 bill recorded N13.16 billion from 22 transactions. The December 10, 2026 Treasury bill also attracted substantial interest, generating N13 billion across 15 trades.
Treasury bill yields ranged from 16.02 percent to 19.48 percent. The June 3, 2027 instrument closed at the highest yield within the segment at 19.48 percent, while the July 9, 2026 bill closed at 16.02 percent.
The bond market also recorded notable activity, particularly in longer-dated securities. The April 18, 2037 Federal Government bond led trading with N44.6 billion across 13 transactions. It was followed by the January 29, 2035 bond with N37.54 billion from 18 trades and the April 17, 2029 bond which generated N22.57 billion from 21 deals. Bond yields remained relatively stable, closing mostly within the range of 16.70 percent to 17.50 percent.
Meanwhile, Sukuk instruments generated N30 billion in turnover from six transactions, with the October 2033 Sukuk closing at a yield of 14.80 percent.
Taken together, the latest reserve figures and market activity provide a picture of an economy experiencing stronger external buffers while investors continue to gravitate toward instruments offering attractive yields. The crossing of the $50 billion threshold is significant not only because it marks a 17-year high, but because it highlights the scale of reserve accumulation achieved within a relatively short period. At the same time, sustained demand for OMO bills suggests that market participants remain focused on locking in returns amid a high-yield environment.
Whether the reserve build-up can be sustained over the longer term will remain a key area of attention. For now, however, the latest figures place Nigeria’s external reserves at their strongest level since 2009, marking a notable milestone in the country’s external sector performance.
