Reserves rise $295m in October, slowest monthly growth in 2026

Nigeria’s gross foreign exchange reserves increased by $295.35 million in October 2026, representing the slowest monthly accumulation recorded so far this year, as the country’s external buffers came under pressure from weaker reserve accretion and a reversal in the naira’s recent gains.

Data from the Central Bank of Nigeria (CBN) showed that gross reserves rose from $54.93 billion at the end of September to $55.22 billion on October 30, extending the country’s reserve accumulation streak despite a significant moderation in the pace of growth.

The October addition was substantially below the increases recorded in previous months, suggesting that the momentum behind Nigeria’s foreign reserve build-up weakened towards the end of the third quarter and into the fourth quarter.

The reserves opened October at $54.95 billion on October 2, climbed gradually to approximately $55.26 billion on October 27, before easing to $55.22 billion by October 30.

A month-by-month assessment of the CBN figures showed that February recorded the strongest accumulation, with reserves increasing by approximately $3.41 billion.

This was followed by a contraction of about $455.52 million in March and another decline of $874.45 million in April, before the external position returned to growth in May with an addition of approximately $1.22 billion.

Reserves subsequently increased by about $1.88 billion in June, $464.87 million in July and another $1.88 billion in August, while September recorded an increase of approximately $1.12 billion.

October’s $295.35 million addition was therefore the smallest positive monthly movement among the months that recorded growth in 2026.

Despite the moderation, gross reserves remained above the $55 billion threshold, providing Nigeria with a stronger external liquidity buffer than it had at the beginning of the year.

The reserve position has also been supported by improvements in net foreign reserves, which provide a different measure of external strength after accounting for certain short-term foreign currency liabilities and other adjustments.

Net foreign reserves rose to a record $46 billion, according to an earlier report by Nairametrics, reinforcing the improvement in Nigeria’s underlying external position.

However, the slower reserve accumulation in October coincided with renewed pressure on the naira, which surrendered part of the gains recorded between July and September.

The currency weakened from N1,329.50/$ at the end of September to N1,346/$ on October 30, reversing approximately 42 per cent of its gains over the preceding three months.

The combination of slower reserve growth and renewed exchange rate pressure raises questions about the sustainability of Nigeria’s external sector improvements, particularly the capacity to maintain reserve accretion while supporting currency stability and meeting foreign exchange obligations.

For policymakers, sustaining the reserve build-up will remain important in strengthening investor confidence, improving external shock resilience and providing the foreign exchange liquidity needed to support economic activity.