By Eshioromeh Sebastian
Nigeria’s external reserves have surged to $50.12 billion, marking the country’s highest level in more than 17 years and crossing the critical $50 billion threshold for the first time since January 2009.
Latest data from the Central Bank of Nigeria (CBN) showed that gross external reserves stood at $50.12 billion as of June 5, 2026, representing a year-on-year increase of 30.9 per cent from $38.28 billion recorded on June 5, 2025.
The development adds approximately $11.84 billion to the nation’s reserve stock within a 12-month period.
The current figure marks the first time reserves have breached the $50 billion mark since January 26, 2009, when they stood at $50.58 billion. This places Nigeria’s foreign currency buffers at their strongest level in over 17 years, reflecting a remarkable recovery from the levels recorded in recent years.
Historical data indicates that while reserves remain below the all-time high of $64.85 billion recorded on August 8, 2008, the latest position is the strongest since the aftermath of the global financial crisis.
At the current level, reserves are approximately $14.73 billion below that record peak but substantially higher than levels recorded over much of the past decade.
The reserve build-up has been particularly pronounced over the past year. From $38.28 billion on June 5, 2025, reserves climbed steadily to reach $50.12 billion on June 5, 2026, reflecting one of the strongest annual increases in recent years.
A month-by-month breakdown shows reserves closing July 2025 at $39.36 billion, increasing to $41.31 billion in August, and rising further to $42.35 billion by September. The upward trend continued through the final quarter of 2025, reaching $43.20 billion in October, $44.67 billion in November, and $45.50 billion by December 31, 2025.
The build-up accelerated in 2026, with reserves climbing to $46.28 billion at the end of January and surging to $49.69 billion by February 27. Although reserves eased slightly to $49.24 billion at the end of March and $48.36 billion at the end of April, the decline proved temporary as holdings rebounded to $49.58 billion by May 29 before reaching the current multi-year high.
Within the 12-month period under review, the lowest reserves level was $37.18 billion on July 3, 2025, while the highest is the current $50.12 billion, representing an increase of approximately $12.94 billion between the low and high points.
OMO Bills Dominate Fixed Income Market
Meanwhile, Open Market Operation (OMO) bills dominated activity in Nigeria’s fixed income secondary market, attracting N655.88 billion in transactions as investors continued to favour short-term securities offering some of the highest yields in the market.
Data from the Fixed Income Dashboard showed that total turnover across fixed income instruments stood at N882.35 billion from 346 trades, with OMO bills accounting for nearly three-quarters of the value traded during the session. The OMO segment recorded 127 trades involving 15 participants.
Treasury bills recorded turnover of N74.86 billion from 132 trades involving 23 participants, while Federal Government of Nigeria (FGN) bonds accounted for N121.61 billion across 81 transactions. Sukuk instruments recorded N30 billion from six deals.
Investor Interest Concentrated on Short-Dated Instruments
Investor interest in the OMO market was concentrated in a handful of maturities. The July 28, 2026, OMO bill was the most actively traded instrument, recording N202.25 billion in transactions across 25 deals. This was followed by the June 23, 2026, OMO bill, which attracted N100 billion from 10 trades.
Other actively traded OMO instruments included the October 13, 2026, bill, which recorded N88.14 billion, and the September 22, 2026, bill with N87 billion in turnover.
Yields in the segment remained elevated. The June 23, 2026, and July 28, 2026, OMO bills closed at yields of 21.68 per cent and 21.63 per cent, respectively, while yields across the market ranged from 18.53 per cent to 21.68 per cent, depending on tenor.
Treasury Bills and Bond Market Activity
In the Treasury bills market, activity was concentrated in medium-dated instruments. The September 24, 2026, bill led trading with N16 billion across 32 deals, while the June 3, 2027, instrument recorded N13.16 billion from 22 transactions. The December 10, 2026, bill also attracted significant interest with N13 billion traded across 15 deals.
Treasury bill yields ranged between 16.02 per cent and 19.48 per cent. The June 3, 2027, bill closed at the highest yield of 19.48 per cent, while the July 9, 2026, bill closed at 16.02 per cent.
The bond market witnessed notable activity in longer-dated securities. The April 18, 2037, FGN bond was the most traded bond, recording N44.6 billion across 13 deals. The January 29, 2035, bond followed with N37.54 billion from 18 trades, while the April 17, 2029, bond generated N22.57 billion from 21 transactions.
Bond yields remained relatively stable, with most securities closing within the 16.70 per cent to 17.50 per cent range. The Sukuk segment recorded N30 billion in turnover from six deals, with the October 2033 Sukuk closing at a yield of 14.80 per cent.
Market Implications
The trading pattern suggests that investors remained focused on locking in attractive short-term returns, with OMO bills attracting the bulk of market liquidity as yields in the segment continued to outpace those available in Treasury bills, bonds, and Sukuk instruments.
Analysts view the sustained reserve accretion as a positive signal for Nigeria’s external position, potentially providing the CBN with greater capacity to defend the naira and meet foreign currency obligations. The $50.12 billion figure strengthens the country’s import cover and enhances investor confidence in the resilience of the Nigerian economy.
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