Nigeria’s Gross External Reserves Increase to $42.865bn

Nigeria’s gross external reserves climbed to $42.865 billion on Wednesday, and most projections sampled showed that the year-end balance will reach $43 billion. The foreign reserves balance is said to cover for about 12 months of imports, and the net position has surpassed the pre-naira reform era. Key drivers of the accretion into the foreign reserves are increases in hydrocarbon earnings, foreign portfolio investment flows and remittances.
Updated data from the Central Bank of Nigeria (CBN) shows that the currency external reserves balance is the highest seen since 2019. Nigeria opened the year with $40.877 billion, with bumps and troughs before peaking on account of a solid FX inflows record from foreign portfolio investors and FX receipts from hydrocarbon sales.