Nigeria is experiencing a significant disconnect between its robust external accounts and the performance of the naira. Despite recording a $7.54 billion current-account surplus in Q2 2026 and growing external reserves of $54.95 billion, the local currency has appreciated by only 0.28 percent. Analysts note that headline surplus figures do not equate to usable market liquidity, as export proceeds, remittances, and capital inflows are often retained offshore, offset by service deficits, or remain volatile portfolio investments. Furthermore, the IMF suggests the naira remains undervalued relative to economic fundamentals, citing a 25.6 percent gap in the real effective exchange rate. Ultimately, currency stability remains contingent on the reliable flow of foreign exchange into the domestic market rather than the total size of national earnings.