External Reserves Grow $2.92bn in Three Months, Hit $38.9bn

Nume Ekeghe

Nigeria’s external reserves grew by $2.92 billion over a three- month period, rising from $36.01 billion by July 19, 2024, to $38.93 billion by October 19, 2024, according to figures released by the Central Bank of Nigeria (CBN).

This represents a significant growth of 8.1 per cent, highlighting an improved inflow of foreign exchange into the country and a positive shift in the country’s external financial buffers.

Interestingly, the last time Nigeria’s external reserves were within this range was September 9, 2022, when they stood at $38.92 billion.

At the start of the period under review, Nigeria’s external reserves stood at $36.01 billion by July 19, 2024. Throughout July, reserves showed steady but modest growth, ending the month at $36.79 billion by July 31, reflecting an increase of $785 million in just under two weeks.

The upward trajectory continued in August, as reserves hit $36.83 billion by August 2 and steadily grew to $36.87 billion by August 6. By August 12, the reserves stood at $36.62 billion, showing a brief drop compared to earlier figures. However, by August 31, the reserves bounced back to $36.83 billion, demonstrating resilience and slight growth, thus adding $50 million between the end of July and the end of August.

Overall, the reserves increased by $833 million in July and August, a modest 2.3 per cent growth over two months.

September marked a key turning point in the country’s reserve build-up. Beginning the month at $36.24 billion by September 2, reserves saw a sustained increase throughout the month, growing from $36.24 billion by September 2 to $38.35 billion by September 30, a $2.11 billion jump in one month.

The sharp rise in reserves during September reflects significant improvements in foreign exchange inflows, possibly driven by stronger oil export revenues, external borrowing, and heightened investor interest in the country’s financial markets.

By the end of September, the reserves had grown by an impressive 5.8 per cent, making it the highest monthly growth recorded during the three-month period under review.

In October, the positive momentum continued. The reserves, which started the month with $38.54 billion by October 2, grew consistently throughout the month, reaching $38.92 billion by October 17. The steady rise saw an increase of $570 million within just two weeks.

Between October 14 and 19, the reserves experienced an increase of $129 million, reflecting the sustained inflows into Nigeria’s external accounts. The mid-October reserves tally of $38.92 billion marked a high point for the country, with the reserves growing by 1.5 per cent from the start of the month to mid-October.