External reserves hit $42bn amidst rise in hydrocarbon revenue

Nigeria’s gross external reserves hit $42 billion last week, the highest level seen since September 2019 with analysts attributing the boost to inflows across different sources. In September, total inflows into external reserves reached $692.28 million, according to data from the Central Bank of Nigeria (CBN). Hydrocarbon export revenue contributed to reserves accretion with analysts […]

Nigeria’s gross external reserves hit $42 billion last week, the highest level seen since September 2019 with analysts attributing the boost to inflows across different sources.

In September, total inflows into external reserves reached $692.28 million, according to data from the Central Bank of Nigeria (CBN).

Hydrocarbon export revenue contributed to reserves accretion with analysts saying the positive trend would continue for a while and contribute to boosting investors’ confidence.

Strong foreign reserves continue to boost investors’ confidence that upstreaming FX would not be difficult as they park US dollar into the financial market instruments.

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In addition, rising oil production remains positive for the naira as fiscal performance maintained an uptrend relative to the recent past record of government hydrocarbon revenue.

In the forex market, the naira is testing the floor again, according to investment banking firm TrustBanc Financial Group Limited.

With reserves rising, spreads narrowing, and foreign confidence stabilising, the market conditions are aligning, according toTrustBanc said, “It is sentiment, not just supply, that ultimately decides how long the floor holds”.

At the official market, the local unit appreciated by 0.91% week-on-week to close at N1,487.90 per dollar, marking its first break below the N1,500 band since early February 2025.

The parallel market also reflected the stronger tone, with the Naira firming by 1.05% to an average of N1,521 per US dollar.External reserves improved as FX inflows and sustained CBN interventions aimed at shoring up confidence in the local unit.

The rise in reserves according to InvestNaija Market watch would boost naira stability.

“The naira’s rally reflects steady FX demand, and rising reserves add a small buffer for currency stability,” it said.