Nigeria’s Usable Reserves Rise From $859m in 2023 to Over $40bn, CBN Says

Nigeria’s foreign-exchange reserves have strengthened

Nigeria's net usable external reserves have risen sharply from $859 million in 2023 to more than $40 billion in 2026, marking a substantial improvement in the country's available foreign-exchange buffer, the Central Bank of Nigeria (CBN) has said.

The CBN disclosed that Nigeria had only $859 million in net usable reserves when the current administration took office in 2023, an amount equivalent to less than one month of the country's import requirements.

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Muhammad Abdullahi, CBN Deputy Governor, Corporate Services, disclosed the figure at the opening of the 38th Seminar of Finance Correspondents and Business Editors in Abuja.

Nigeria’s Usable Reserves Were Critically Low in 2023

The $859 million figure represents the foreign exchange that the CBN considered available after accounting for known short-term obligations.

This differs from gross external reserves, which represent the broader stock of reserve assets reported by the central bank.

The CBN explains that external reserves serve several purposes, including meeting external obligations, supporting foreign-exchange market operations and providing a buffer against external shocks.

According to Abdullahi, the low level of usable reserves in 2023 reflected the severe pressure on Nigeria's foreign-exchange position at the time.

Net Usable Reserves Rise Above $40bn

Three years later, the CBN says net external reserves have increased to more than $40 billion.

The improvement represents a substantial increase in the foreign exchange immediately available to support international payments and manage external pressures.

The CBN Governor, Olayemi Cardoso, had told the Senate in July 2026 that gross external reserves stood at $52.73 billion as of July 9, while net external reserves had exceeded $40 billion.

The figures demonstrate a significant change from the reserve position described by the CBN at the beginning of the current administration.

FX Reforms Reshaped Nigeria’s Currency Market

Abdullahi attributed the improvement partly to reforms implemented since 2023.

The CBN consolidated Nigeria's multiple foreign-exchange windows in June 2023 and moved towards a willing-buyer, willing-seller framework.

The central bank also removed restrictions affecting 43 categories of imports from accessing the official foreign-exchange market and reviewed outstanding forward claims.

According to Abdullahi, the reforms were intended to improve transparency, increase liquidity and restore confidence in the foreign-exchange market.

Outstanding FX Claims Added to Pressure

The CBN official said Nigeria had more than $7 billion in outstanding foreign-exchange forward claims in 2023.

The obligations added to uncertainty for businesses because companies faced difficulty determining which exchange rate would apply to transactions and whether foreign currency would be available when required.

The CBN subsequently reviewed the outstanding claims and settled those it determined to be valid.

This was significant for businesses with foreign-currency obligations, particularly companies dependent on imported machinery, equipment and raw materials.

Stronger FX Liquidity Matters for Construction

The improvement in foreign-exchange availability has implications for Nigeria's construction and real-estate sectors.

Developers and contractors often face exposure to foreign-currency movements through imported construction equipment, machinery, components and some building materials.

When access to foreign exchange is uncertain, developers face greater difficulty forecasting project costs. Sharp exchange-rate movements can also increase the naira cost of imported inputs and force developers to revise budgets.

A more liquid and predictable foreign-exchange market can therefore improve cost visibility for construction projects, although it does not automatically mean that building-material prices will fall.

Property Investors Could Benefit From Greater Currency Predictability

Foreign-exchange stability also affects investment decisions.

Real-estate projects typically require significant upfront capital and may take several years to complete. Greater currency predictability can make it easier for developers and investors to model construction costs, expected returns and financing requirements.

This is particularly relevant to institutional investors and international capital seeking exposure to Nigeria's property market.

However, exchange-rate stability represents only one component of the investment environment. Interest rates, inflation, land costs, taxation, infrastructure and housing demand will continue to influence project viability.

Reserves Provide a Larger External Buffer

The CBN says external reserves provide confidence that a country can meet external obligations and help the monetary authority respond to foreign-exchange pressures.

The increase in net usable reserves therefore gives the central bank a larger buffer than it had in 2023.

It also provides greater capacity to manage liquidity in the foreign-exchange market, although the sustainability of the improvement will depend on the country's ability to generate and retain foreign-exchange inflows.

Oil, Remittances and Market Reforms Support Inflows

The CBN has linked the stronger reserve position to improved foreign-exchange inflows, including increased diaspora remittances and changes in market operations.

Higher oil production can also support external liquidity because crude exports remain an important source of foreign exchange for Nigeria.

The broader improvement in the external position therefore depends on both policy reforms and the country's ability to sustain foreign-exchange earnings.

What Stronger Reserves Mean for Housing

For the housing sector, the most immediate benefit is potentially improved predictability rather than a direct reduction in house prices.

If foreign-exchange conditions remain more stable, developers may have greater certainty when budgeting for imported equipment and materials.

This could support more accurate pricing and reduce some of the currency-related risks associated with long-term construction projects.

However, Nigeria's housing affordability challenge extends beyond foreign exchange. Land costs, local building-material prices, labour, infrastructure charges, interest rates and limited mortgage finance remain major constraints.

The Reserve Recovery Does Not Eliminate Economic Risks

The increase from $859 million to more than $40 billion represents a substantial improvement, but the CBN's figures do not by themselves establish that Nigeria's broader economic challenges have been resolved.

The country remains exposed to movements in global oil prices, capital flows, import demand and other external factors.

The composition and sustainability of reserve accumulation also matter for assessing the country's longer-term external position.

For businesses and investors, the key issue will therefore be whether improved reserve levels translate into sustained foreign-exchange liquidity and a more predictable operating environment.

Outlook

The CBN's latest disclosure provides a sharp comparison between Nigeria's foreign-exchange position in 2023 and 2026.

Net usable external reserves stood at just $859 million in 2023 but have since risen above $40 billion, according to the apex bank.

For the real-estate and construction industries, the improvement could support better project-cost planning and reduce some foreign-exchange risks associated with imported inputs.

The longer-term significance for the property market will depend on whether stronger reserve levels are sustained alongside moderating inflation, improved credit conditions and greater stability in the foreign-exchange market.

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