Nigeria’s foreign exchange reserves have risen to $55.25 billion, the highest level in 18 years, as the Central Bank of Nigeria (CBN) reduced its benchmark interest rate from 26.5 per cent to 23 per cent.
The CBN announced the development in a communiqué issued after the 307th meeting of its Monetary Policy Committee (MPC) on Tuesday.
According to the apex bank, the reserves, which stood at $55.25 billion as of September 18, 2026, are enough to cover 11.3 months of imports of goods and services.
The CBN also reported an improvement in Nigeria’s current account position. The surplus increased by 67.92 per cent, from $4.49 billion in the first quarter of 2026 to $7.54 billion in the second quarter.
Similarly, the balance of payments surplus rose from $2.38 billion in the first quarter to $3.51 billion in the second quarter.
CBN Governor, Olayemi Cardoso, said the stronger external position had helped to improve stability in the foreign exchange market.
“Foreign exchange pressures had receded significantly as the country rebuilt its external buffers,” Cardoso said.
He added that the improvement had strengthened Nigeria’s ability to withstand external pressures.
The latest reserve figure is an increase from the $46.70 billion recorded in November 2025, which the CBN said was enough to cover 10.3 months of imports.
At the MPC meeting, the CBN also reduced the Monetary Policy Rate (MPR) to 23 per cent from 26.5 per cent.
The bank said the decision was aimed at improving the effectiveness of monetary policy and adjusting the policy corridor to reflect current market conditions.
The MPC also adjusted the Standing Facilities Corridor to +50 and -300 basis points around the new MPR.
Cardoso said the previous MPR had become increasingly disconnected from prevailing market rates, making it less effective in influencing economic activity.
The CBN said improved external conditions, easing inflation and stronger economic growth provided the basis for the adjustment.
The development comes as the Federal Government continues with economic reforms aimed at stabilising the foreign exchange market and strengthening Nigeria’s external reserves.
The CBN said the impact of the improved reserves and new interest-rate framework would depend on how these developments translate into economic activity and improved living conditions for Nigerians.
