Nigeria External Reserves Hit Record $50.04bn on New FX Manual

Nigeria’s gross external reserves climbed to a record 50.04 billion dollars in early June 2026, the Central Bank of Nigeria confirmed, as the implementation of the apex bank’s fourth edition Foreign Exchange Manual since June 1 strengthened the naira and reinforced investor confidence in the country’s currency management framework.

Data published on the CBN’s website showed reserves rose to 49.80 billion dollars as of June 1, up from 48.32 billion dollars on May 7, before climbing further to the record 50.04 billion dollar level. The naira appreciated by 5.74 naira at the official market, closing at 1,361.05 to the dollar in one recent session, reflecting improved liquidity in the Nigerian Foreign Exchange Market window.

CBN Governor Olayemi Cardoso, who recently received the Central Bank of the Year award for his role in Nigeria’s forex and Financial Action Task Force reforms, said the new manual was designed to deepen foreign exchange transparency, improve liquidity, and strengthen market confidence. Under the new guidelines, authorised dealers can engage in spot foreign exchange transactions among themselves, with customers, and with the CBN in any acceptable currency.

Parallel Market Gap Widens Slightly

However, the gap between the official and parallel market exchange rates widened to 24 naira per dollar from 19 naira recorded 24 hours earlier following the naira’s official market appreciation, according to market data. Analysts said the temporary widening reflected adjustment dynamics as market participants absorbed the new manual’s provisions, and that the gap was expected to narrow again as liquidity conditions stabilised.

Furthermore, the CBN’s latest Business Expectations Survey showed that business confidence in Nigeria improved in May 2026, with firms across agriculture, industry, and services reporting more positive outlooks and expecting gradual naira appreciation in the coming months. However, the survey also showed that employment sentiment remained negative, with companies indicating plans to slow or reduce hiring despite improving business conditions.

Still, the Centre for the Promotion of Private Enterprise warned against prolonged monetary tightening and what it described as rising reliance on foreign portfolio inflows to sustain reserve growth. The CPPE said structural improvements in export earnings, rather than portfolio flows alone, would be needed to make the reserve gains durable. Notably, the CBN separately projected that Nigeria’s economy would grow by 4.49 per cent in 2026, up from an estimated 3.89 per cent in 2025, citing Dangote Refinery related investment, improved oil production, and easing monetary policy as key drivers. Consequently, the combination of record reserves, naira appreciation, and an improved growth outlook represents one of the strongest macroeconomic snapshots Nigeria has recorded since the 2023 reform programme began.

Foreign VAT Collections Rise 83 Per Cent

In addition, foreign Value Added Tax collections rose 83 per cent year on year to 830.47 billion naira in the first quarter of 2026, according to data reported by Nairametrics, reflecting stronger enforcement of VAT obligations on foreign digital service providers operating in Nigeria. As a result, the federal government’s revenue diversification efforts appear to be gaining traction across multiple fronts simultaneously, even as the IMF separately urged Nigeria to introduce a telecom tax and VAT on fuel products to further broaden the revenue base.