Nigeria’s gross external reserves surged to $50.45 billion as of 16 February 2026, the highest level in 13 years, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Tuesday.
Speaking to journalists at the conclusion of the 304th Monetary Policy Committee (MPC) meeting in Abuja, Cardoso attributed the increase to stronger macroeconomic conditions, improved market confidence, and positive trade dynamics.
“Gross external reserves rose significantly to $50.45 billion, providing an import cover of 9.68 months for goods and services,” he said.
The CBN governor highlighted that the reserves’ growth is supported by a surplus current account, higher non-oil exports, and robust market confidence.
“We have consistently engaged in international fora, communicated transparently, and upheld our commitments, which has bolstered investor confidence and helped drive this outcome,” Cardoso noted.
Sustainability and risks
While celebrating the milestone, Cardoso cautioned that external and domestic risks remain. He pointed to potential global shocks, oil price volatility, pre-election spending, and fiscal pressures as factors that could impact reserves stability.
“Reserves growth is strong, but sustainability requires vigilance. Policy consistency and careful fiscal management are critical to maintaining this trajectory,” he said.
The apex bank projects reserves could reach $51 billion by the end of 2026. For context, this is the highest level since May 2013, when reserves stood at $48.51 billion. Reserves ended 2025 at roughly $45.5 billion, up from $40.8 billion at the start of the year.
Monetary policy update
At the meeting, the MPC unanimously voted to reduce the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27 per cent to 26.50 per cent. The committee also maintained the liquidity ratio at 30 per cent, adjusted the standing facilities corridor to +50/-450 basis points around the MPR, retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and kept the 75 per cent CRR on non-TSA public sector deposits.
Cardoso explained that the decision was guided by a balanced assessment of risks, noting that Nigeria’s inflation continued its downward trend for the 11th consecutive month in January 2026.
“The disinflation trajectory is supported by the lagged effects of previous tightening, sustained exchange rate stability, and improved food supply. Stronger export earnings and higher remittance inflows have also reinforced external sector stability,” he said.
