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How Nigeria’s Foreign Reserves Rose to $54.61bn in 2026

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Nigeria’s gross foreign exchange reserves have risen to $54.61 billion in 2026, representing a $12.76 billion increase from the $41.84 billion recorded a year earlier.

The latest figure, recorded as of September, represents a 30.5 per cent year-on-year increase and continues a steady accumulation of Nigeria’s external reserves that became more pronounced from the middle of the year.

But how did Nigeria build up such a substantial reserve position within months?

Available data and analysis point to a combination of stronger oil-sector earnings, increased foreign capital inflows, diaspora remittances, non-oil export proceeds and changes in foreign exchange and monetary management.

Oil production and earnings

One of the factors supporting the improvement has been stronger crude oil production.

SEE ALSO: Nigeria Beats 2026 Foreign Reserves Target, Hits $53.1b

Analysis of Central Bank of Nigeria (CBN) data by Nairametrics showed that reserves stood at $49.80 billion on June 1 before crossing the $50 billion mark on June 4. By July 3, the balance had risen to $51.53 billion and subsequently moved above $52 billion in August.

Earlier CBN data analysis also showed that crude oil and condensate production averaged about 1.68 million barrels per day in April, 1.73 million barrels per day in May and 1.72 million barrels per day in June, before standing at about 1.68 million barrels per day in July.

The stronger production has coincided with higher oil-sector revenues. Nairametrics reported that NNPC revenue rose from N2.57 trillion in January to N2.68 trillion in February and N2.77 trillion in March, before jumping to N4.97 trillion in April. It subsequently stood at N4.34 trillion in May, N4.39 trillion in June and N3.09 trillion in July.

Aminu Gwambe, President of the Association of Bureaux De Change Operators of Nigeria, also attributed part of the reserve improvement to higher crude oil prices and increased production.

According to Gwambe, reduced volatility in the Niger Delta and lower crude oil theft have helped improve production and, consequently, foreign exchange receipts.

Foreign capital inflows surge

Another major development has been the increase in foreign capital entering Nigeria.
Nigeria attracted $10.37 billion in foreign capital in the first quarter of 2026, representing an 83.8 per cent increase from the $5.64 billion recorded in the corresponding period of 2025, according to National Bureau of Statistics data.

Portfolio investment accounted for the overwhelming majority of the inflows, reaching $9.86 billion, or 95.09 per cent of total capital imported during the quarter.

The banking sector attracted $7.55 billion, representing 72.79 per cent of total capital imported, while the financing sector received $2.43 billion.

The United Kingdom was the largest source of the foreign capital, contributing $5.08 billion, followed by the United States with $3.18 billion and South Africa with $983.83 million.

The increase in portfolio inflows has been linked by analysts to improved conditions in Nigeria’s foreign exchange market and the attractiveness of Nigerian financial assets and yields.

However, the composition of the inflows is significant because portfolio investments can be more easily reversed than longer-term foreign direct investment.

Remittances and non-oil exports

The reserve buildup has also been linked to stronger diaspora remittances passing through official channels.

Gwambe pointed to increased remittance flows following Nigeria’s foreign exchange reforms, as well as growing dollar liquidity through licensed fintech channels.

Higher non-oil export proceeds have also contributed to the country’s foreign exchange earnings, while improvements in fiscal and monetary management have supported the broader accumulation.

These sources are important because they provide foreign exchange beyond crude oil, although their contribution must be viewed alongside the much larger role still played by oil and financial-market inflows.

Foreign investors show greater interest
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, linked part of the improvement to stronger foreign investor confidence and increased portfolio inflows.

Yusuf said, “It takes a lot of confidence in an economy for foreign inflows to come in,” while also pointing to improving export performance.

A source at the CBN disclosed that interest from foreign investors in Nigerian government securities had increased, with the apex bank receiving enquiries from foreign investors seeking information about Nigeria’s long-term bonds.

The development suggests that some investors are showing greater interest in holding Nigerian financial assets, although the extent to which such inflows remain in the country over the longer term remains uncertain.

FX and monetary reforms

Changes in Nigeria’s foreign exchange management have also played a role in the changing external position.

Analysts have linked stronger inflows partly to reforms aimed at improving liquidity and reducing distortions in the foreign exchange market.

The improvement in reserves has occurred alongside a period of relative stability in the naira.

The currency closed at N1,329.50/$ on September 15, compared with N1,328/$ on September 10, with the naira remaining within a narrow range over four consecutive trading sessions.

The stronger reserve position gives the CBN a larger external buffer with which to respond to temporary foreign exchange pressures and manage excessive volatility.

The numbers show how quickly reserves have accumulated
The pace of accumulation has accelerated during 2026.

Reserves stood at $50.03 billion in March and reached $49.80 billion on June 1. They crossed $50 billion on June 4 and reached $51.53 billion by July 3.

By August 14, reserves had risen to $52.32 billion.

They then climbed to $53.90 billion on September 1, $54.08 billion on September 3 and finally $54.61 billion on September 14.

That means Nigeria added about $707.75 million to its reserves during the first 14 days of September alone, while the balance increased by about $2.28 billion between August 14 and September 14.

The current position is also above the approximately $51.04 billion reserve level projected by the CBN for the whole of 2026.

Sustainability remains a concern

Despite the sharp increase, analysts have cautioned that the composition of the reserves matters as much as the headline figure.

A former Access Bank Treasury official noted that it is difficult to attribute the buildup to one particular source because several channels contribute to reserve accumulation.

Portfolio inflows can strengthen Nigeria’s foreign exchange liquidity, but they can also leave quickly when global interest rates, exchange-rate expectations or investor sentiment change.

Similarly, oil remains vulnerable to fluctuations in international crude prices and disruptions to domestic production.
Olu Olajemgbese of the University of Abuja therefore argued that a more sustainable improvement would require a broader mix of foreign exchange sources, including non-oil exports, remittances and productive foreign direct investment.

Gwambe has also raised concerns about the continuing gap between the official and parallel foreign exchange markets.

“My worry is on the inherent gaps between the official market and the parallel market rates,” he said.

He called for greater integration of Bureau de Change operators into the formal foreign exchange system and increased participation in the market.

 

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Investors Embrace DPRP IPO Globally, 120 Countries, 54 African Nations

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Dangote Refinery to Open Global Markets for Nigeria’s Downstream, Midstream Sectors

The Dangote Petroleum Refinery and Petrochemicals (DPRP) has successfully concluded its landmark Initial Public Offering (IPO), attracting investor applications from 120 countries across the world, including all of Africa’s 54 countries.

A company statement describes it as an unprecedented demonstration of the continent’s capacity to mobilise capital and broaden ownership of strategic industrial assets.

The historic offering, widely described as The People’s IPO, achieved 100 percent geographical coverage of Africa, bringing together investors from across the continent and beyond in a transaction that could redefine the scale, accessibility and international reach of African capital markets.

READ ALSO: Dangote Refinery Pioneers Honeywell’s AI Technology

More than a conventional fundraising exercise, the IPO has emerged as a landmark in financial inclusion, demonstrating how digital technology, coordinated financial institutions and innovative distribution channels can connect millions of potential investors to opportunities previously dominated by institutional and high-net-worth participants. The transaction was supported by an extensive network of commercial banks, stockbroking firms, fintech platforms, capital market institutions and distribution partners, whose collaboration expanded access to the offer across national boundaries and created new pathways for retail participation.

For the Dangote Industries Limited (DIL), the conclusion of the IPO marks a defining moment in its industrial journey, transforming the refinery’s ownership proposition from an investment driven by a single entrepreneurial vision into an opportunity for broader African participation. President and Chief Executive of the DIL, Aliko Dangote, described the outcome as a powerful affirmation of African confidence, enterprise and the continent’s ability to mobilise its own resources for development.

“When we set out to build this refinery, many doubted that a project of this scale could be delivered by Africans. We proved that Africa could build it. Today, through this historic IPO, we have demonstrated something equally important: Africans are ready to own and participate in the prosperity created by their own industries.

“To have investor applications from all 54 African countries is deeply significant to me. It tells us that our people do not simply want to consume what Africa produces; they want to invest in it, own it and share in its future. This is the Africa we have always believed in,” he said. “We did not undertake this IPO simply because we needed to raise capital. We wanted to open the doors of ownership, give ordinary Africans an opportunity to participate in an enterprise of global significance and establish a new culture of shared prosperity. The refinery was built in Africa, by African determination, and its future must create opportunities for Africans. Today, we have made history together. But the greater achievement will be the generation of African investors, entrepreneurs and industrialists that this transaction inspires. Our ambition is not merely to build successful businesses. It is to help build a prosperous, self-reliant Africa whose people are participants in its economic destiny. As we advance our expansion programme and Vision 2030 strategy, we remain committed to strengthening our operational performance, deepening our contribution to Africa’s energy security and building an enterprise that rewards the confidence placed in it”

The IPO’s geographical reach is particularly significant for a continent where capital markets have historically been fragmented by national boundaries, differing regulatory environments and limited retail investor participation. By attracting applications from all 54 African countries, the transaction has demonstrated the potential for a more connected investment ecosystem in which Africans can participate in major industrial opportunities beyond their domestic markets. The offering also highlights the growing importance of digital financial infrastructure in widening investment access. Through partnerships involving traditional financial institutions and technology-driven investment platforms, the transaction created multiple channels through which eligible investors could express interest and submit applications.

Managing Director and Chief Executive Officer of DPRP, David Bird, said the international response reflected confidence in the refinery’s operating capabilities, industrial scale and long-term growth prospects.

“The successful conclusion of this IPO is a remarkable milestone for Dangote Petroleum Refinery and Petrochemicals. Investor applications spanning 120 countries demonstrate the extraordinary international interest in our business and the confidence that investors are placing in the future of this refinery. We have built one of the world’s most significant refining and petrochemical complexes, and our focus remains on translating that industrial scale into operational excellence, sustainable growth and long-term shareholder value,” he said. “What makes this transaction particularly meaningful is the breadth of participation. The opportunity to own a stake in a major African industrial enterprise has reached investors across every African country and all six inhabited continents. That is a powerful endorsement of the refinery’s potential and of Africa’s growing relevance in global investment markets.”

The refinery’s IPO opened on September 14, 2026, offering 4.1 billion ordinary shares at N525 per share, representing a proposed capital raise of approximately N2.15 trillion. Initially scheduled to close on October 13, the offer was extended to October 27 following approval by the Securities and Exchange Commission, allowing additional time for investors across Africa and other international markets to participate. The extension reflected the Group’s stated ambition to prioritise the breadth of ownership alongside the financial objectives of the transaction. Beyond the industrial significance of the refinery itself, the IPO has also established a model for collaboration across Africa’s financial services ecosystem. Its distribution network brought together institutions operating across banking, securities trading, financial technology and investor engagement, demonstrating how coordinated infrastructure can expand access to large-scale investment opportunities.

On his part, the Group Chief Financial Officer, DIL, Murat Erden, on the execution and wider significance of the offering, said the transaction had established an important precedent for the continent’s capital markets.

“The Dangote Refinery People’s IPO represents much more than a landmark capital-raising exercise. It marks a defining moment in the evolution of African capital markets, demonstrating our continent’s ability to mobilise domestic savings, connect investors across borders and broaden ownership of strategic industrial assets. Reaching investors in 120 countries, including all 54 African nations, is an extraordinary achievement and a powerful testament to the growing investment appetite across our continent. By bringing together banks, capital market institutions, stockbrokers, fintech platforms and innovative digital distribution channels, we have demonstrated that African capital markets can transcend national boundaries and connect millions of people to investment opportunities previously beyond their reach,” he said. “Importantly, this transaction is underpinned by exceptional industrial and financial fundamentals. With US22.5 billion in revenue and US5.52 billion in EBITDA in the first nine months of 2026, Dangote Refinery combines world-class industrial scale, strong profitability and significant long-term growth potential. Our greatest achievement is not simply the capital we mobilise, but the doors we open and the foundation we lay for future generations of African investors, entrepreneurs and businesses. We believe the People’s IPO will be remembered not only as a landmark transaction in African capital market history, but as a blueprint for a more inclusive, interconnected and globally competitive African financial ecosystem — one in which Africans increasingly finance, own and share in the prosperity created by their continent’s industrial transformation.”

The successful conclusion of the offer comes as Dangote Petroleum Refinery and Petrochemicals pursues an ambitious programme to expand its refining and petrochemical operations, strengthen its distribution network and support greater energy security across Africa. Located in Lagos, the refinery represents one of the continent’s largest private industrial investments and a major effort to reduce dependence on imported refined petroleum products while building domestic processing capacity.

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Dangote Refinery Pioneers Honeywell’s AI Technology

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Dangote Refinery to Open Global Markets for Nigeria’s Downstream, Midstream Sectors

The Dangote Petroleum Refinery and Petrochemicals (DPRP) is set to become the first industrial facility to deploy Honeywell Technologies’ newly launched artificial intelligence platform, in a major technological advancement projected to deliver more than $60 million in annual gross operational benefits at full refining capacity.

The deployment of the platform, known as Forge Plant Cognition, will position the Lekki-based refinery at the forefront of AI-driven industrial operations, combining Honeywell Technologies’ process engineering expertise with NVIDIA’s artificial intelligence capabilities and Dell Technologies’ computing infrastructure to improve refining efficiency, maximise output and strengthen operational reliability. Announcing the development, Honeywell Technologies said the new platform would make its global debut at Dangote Refinery, one of the world’s largest refineries, as part of efforts to unlock greater value from existing industrial assets and transform how complex refining and petrochemical facilities are operated.

According to preliminary assessments, the technology could generate operational benefits exceeding 29 cents per barrel at the refinery. At full-capacity throughput, Honeywell estimates that the improvements could translate into more than $60 million in annual gross benefits. The company, however, clarified that the projection was specific to the Dangote facility, based on preliminary data and subject to actual operating conditions. The development represents another significant step in Dangote Refinery’s technological evolution, as the company moves beyond the construction and commissioning of a world-class industrial complex towards the deployment of advanced digital systems designed to maximise productivity, strengthen competitiveness and support its ambitious expansion programme.

READ ALSO: NALPGAM Preaches Innovation, Safety to LPG Operators

Managing Director and Chief Executive Officer of DPRP, David Bird, said the decision to adopt the technology reflected the refinery’s commitment to operational excellence, innovation and the development of Nigerian engineering talent.

“We chose Honeywell Technologies’ Forge Plant Cognition because the platform can deliver unrivaled industrial expertise combined with differentiated AI capabilities to help us optimize performance, unlock greater value from our operations and evolve how we operate our assets,” Bird said. “This investment reinforces our commitment to operational excellence, advancing technology and developing Nigerian talent to operate at world-class standards.”

Unlike conventional industrial monitoring systems that primarily analyse operating data and generate recommendations, Forge Plant Cognition is designed to integrate real-time plant information with engineering knowledge, advanced calculations, and physics-based models to identify operational constraints and support faster, more informed decisions. The technology will enable refinery engineers and operators to detect potential equipment and process problems before they escalate, identify bottlenecks affecting production and recommend corrective actions to improve throughput, product yields, and overall plant performance.

Honeywell explained that the platform would focus on three critical areas: identifying opportunities to improve refining margins, protecting production by reducing unplanned downtime, and making specialised engineering expertise more readily available to plant personnel. By combining these capabilities, the system is expected to help operators extract greater value from existing equipment while strengthening the reliability and efficiency of interconnected refining processes. Forge Plant Cognition would help transfer specialised process knowledge into AI-powered tools accessible to local engineers and operators, enabling them to solve complex problems more efficiently and develop advanced industrial capabilities. The initiative supports Dangote Refinery’s objective of building a workforce comprising more than 70 per cent Nigerians, while progressively reducing dependence on external technical expertise.

President of Honeywell Technologies UOP, Rajesh Gattupalli, described the collaboration with Dangote as a demonstration of the potential of artificial intelligence to transform large-scale industrial operations.

“Industrial plants are among the most complex operating environments in the world, with enormous potential to realize greater performance and value using digital technologies and connected solutions,” Gattupalli said. “By collaborating with Dangote to launch Forge Plant Cognition, we are demonstrating how AI can help transform industrial operations, driving new levels of productivity, reliability and profitability at significant scale.”

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Standard Chartered Inks Deal for Shell Gas Sale

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Standard Chartered says it acted as the sole financial adviser to Shell International Limited on the sale of Shell Nigeria Gas Limited to Vaaris Energy Limited, in a transaction expected to be completed in the first half of 2027.

The bank disclosed this in a statement announcing its advisory role in the transaction, which involves one of Nigeria’s leading gas distribution platforms.

Shell entered into an agreement to sell the business on 13 October, 2026, with the transaction expected to provide Vaaris Energy with an established gas infrastructure network serving industrial and commercial customers.

Shell Nigeria Gas provides gas supply solutions to businesses through its extensive distribution infrastructure, positioning the company to benefit from growing domestic gas demand.

READ ALSO: NALPGAM Preaches Innovation, Safety to LPG Operators

Standard Chartered explained that it provided strategic and financial advice throughout the transaction, managing the entire sale process, including transaction preparation and positioning, buyer engagement, deal structuring, negotiations, due diligence coordination and transaction documentation.

Commenting on the transaction, the Chief Executive Officer and Head of Coverage for Africa at Standard Chartered, Dalu Ajene, stated that Nigeria’s gas sector had an important role to play in supporting the country’s economic ambitions and meeting rising domestic energy demand.

“Nigeria’s gas sector has an important role to play in supporting the country’s economic ambitions and meeting growing domestic energy demand. Across Africa, investment in critical energy infrastructure is essential to unlocking industrial growth and long-term development, and this transaction demonstrates the role strategic investment can play in advancing that opportunity. At Standard Chartered, connecting our clients in Nigeria and across Africa to global capital and investors remains a priority. We are pleased to have supported Shell by bringing together the strength of our international network, deep local knowledge and sector expertise.”

The Head of Mergers and Acquisitions for Africa at Standard Chartered, Yemisi Deji-Bejide, said the transaction demonstrated the bank’s capacity to execute complex deals by combining international expertise with local market knowledge.

“We are proud to have advised Shell on the sale of one of Nigeria’s leading gas distribution platforms. As sole financial adviser, we brought together end-to-end M&A execution, deep sector expertise and strong buyer connectivity. This transaction demonstrates the strength of our Africa M&A franchise and our ability to combine global capabilities with local market insight to execute complex, strategically important transactions for our clients.”

The bank said the transaction supported Shell’s ongoing portfolio optimisation strategy while providing a platform for the continued development of Shell Nigeria Gas under Vaaris Energy.

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