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…External reserves hit $50.01bn on CBN websiteADVERTISEMENT

The naira has rebounded to N1,376.19 per dollar after depreciating for 15 consecutive trading sessions in the official foreign exchange (FX) market, following the Central Bank of Nigeria’s (CBN) resumption of dollar sales amid external reserves growth, now recorded at $50.01 billion on the apex bank’s website.

Data published by the CBN showed that the naira appreciated by N25.21 in a single trading session to N1,376.19 on Wednesday, marking a 1.83 percent gain compared to the N1,401.40 quoted on Monday at the Nigerian Foreign Exchange Market (NFEM). Market participants quoted the dollar at a low of N1,373 and a high of N1,388 at the NFEM, according to CBN data.

In the parallel market, also known as the black market, the naira held steady at N1,440 per dollar on Wednesday. The exchange rate gap between the official and parallel markets widened by 4.7 percent to N64 on Wednesday from 2.8 percent or N39 on Tuesday.

External reserves, which give the CBN the capacity to defend the naira, have been steadily rising, hitting $50.01 billion as of March 10, 2026, according to data published on the CBN website. Olayemi Cardoso, CBN governor, said the improvement in reserves reflects stronger external fundamentals and ongoing policy reforms aimed at restoring confidence in the FX market.

The CBN last week resumed dollar sales after accumulating dollars in previous weeks to manage the naira’s appreciation at the NFEM. The apex bank sold $314.2 million, representing about 25 percent of total FX inflows. As of last week, total FX inflows stood at $1.26 billion, according to a report by Coronation Merchant Bank’s research department.

The report highlighted that foreign portfolio investors (FPIs) accounted for the largest share, contributing $518.7 million (41.3 percent) of total inflows. Exporters contributed $159.1 million (12.7 percent), non-bank corporates $135.5 million (10.7 percent), individuals $110.9 million (8.8 percent), with the remainder coming from other sources.

The CBN also reported that Nigeria’s gross external reserves rose to $50.45 billion, boosting confidence in the country’s foreign exchange position and signaling stronger liquidity conditions. Cardoso disclosed this at the conclusion of the 304th Monetary Policy Committee (MPC) meeting held in Abuja last month. He noted that the current reserve level is sufficient to provide approximately 9.68 months of import cover, providing a stronger cushion against external shocks.

Nigeria’s net external reserves surged by 772.18 percent over two years, reaching $34.80 billion at the end of 2025 from $3.99 billion in 2023, according to Cardoso. He added that the sharp rise reflects a fundamental improvement in the quality of the country’s external buffers. The 2025 net reserve position alone surpassed the total gross reserves recorded at the end of 2023, which stood at $33.22 billion.

Cardoso attributed the gains to increased transparency and credibility in foreign exchange management, which has bolstered investor confidence, attracted stronger FX inflows, and enhanced reserve management practices focused on capital preservation, liquidity, and long-term sustainability.