Nigeria's external reserves have climbed to $42 billion, the highest level in six years, driven by stronger hydrocarbon exports and steady inflows of foreign exchange, according to the Central Bank of Nigeria (CBN).
The build-up, last seen in September 2019, is boosting confidence in the economy and providing the CBN with greater liquidity to stabilise the Naira and manage shocks. For small and medium-sized enterprises (SMEs), analysts say the development could translate into a more stable business environment and better access to forex for imports, raw materials, and expansion.
In September alone, reserves received inflows of $692.28 million. The stronger position has already coincided with naira appreciation in both official and parallel markets, with the currency trading below N1,500 per dollar for the first time since February 2025. This relative stability, experts note, helps SMEs plan ahead and reduces uncertainty in pricing, procurement, and cross-border transactions.
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While the rise signals resilience and could attract fresh investment, challenges such as high inflation, debt obligations, and weak purchasing power still weigh heavily on businesses. Analysts caution that higher reserves should be seen as a foundation for reforms that will ease access to credit, strengthen local supply chains, and support SMEs to scale sustainably.
With reserves at their strongest point in six years, stakeholders are optimistic that Nigeria's growing buffer may offer small businesses more predictability, provided fiscal and structural reforms keep pace.
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