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External Reserves Hit $50.45bn, Highest in 13 Years
Nigeria’s gross external reserves have climbed to $50.45 billion, making the highest level in 13 years, the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.
The Governor disclosed this on Tuesday at the end of the 304th Monetary Policy Committee (MPC) meeting in Abuja.
According to the Governor, the reserves position stood at $50.45 billion as of February 16, 2026, providing an import cover of approximately 9.68 months for goods and services, a level widely considered adequate to cushion external shocks and stabilise the foreign exchange market.
Cardoso attributed the strong reserve accretion to improved export earnings, increased diaspora remittance inflows, and sustained capital inflows, which have collectively bolstered Nigeria’s balance of payments position.
The MPC noted that the robust performance of the external sector has contributed significantly to exchange rate stability in recent months, helping to anchor inflation expectations and restore investor confidence.
The Committee also welcomed Presidential Executive Order 09, which redirects oil and gas revenues into the Federation Account, acknowledging its potential to enhance fiscal transparency, improve revenue flows, and further support reserve accumulation.
Economic Confidential reports that the strengthening reserves position comes against the backdrop of sustained disinflation. Headline inflation eased to 15.10 per cent in January 2026, marking the eleventh consecutive month of year-on-year decline.
The MPC observed that exchange rate stability supported by higher reserves has played a critical role in moderating imported inflation and stabilising food and core price components.
Month-on-month inflation turned negative at -2.88 per cent in January, indicating continued softening of price pressures.
Citing improved macroeconomic conditions, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, describing the move as a measured response consistent with prevailing inflation dynamics.
The Committee maintained that the combination of strong reserve buffers, stable exchange rate conditions, moderating inflation, and expanding economic activity — reflected in a Purchasing Managers’ Index (PMI) reading of 55.7 — provides cautious optimism for sustained macroeconomic stability.
While the outlook remains positive, the MPC warned that increased fiscal releases, particularly election-related spending, could pose upside risks to inflation in the near term.
Globally, the Committee acknowledged improving economic prospects in 2026 but cautioned that rising protectionism, geopolitical fragmentation, and trade tensions remain potential headwinds.
Nonetheless, the CBN reaffirmed its commitment to evidence-based monetary policy aimed at safeguarding price stability while ensuring financial system resilience.
