By By Elizabeth Ugbo
Nigeria’s gross external reserves climbed to $50.45 billion on February 16, 2026, according to the Governor of the Central Bank of Nigeria, Olayemi Cardoso, who announced the figures on Tuesday at the end of the 304th Monetary Policy Committee meeting in Abuja. He said the increase reflects stronger macroeconomic conditions, improved trade performance, and rising investor confidence, while also providing 9.68 months of import cover for goods and services.
Nigeria’s External Reserves Hit 13-Year High
Cardoso described the reserve level as the highest in 13 years. He explained that the improvement signals stability in Nigeria’s external sector.
The reserves stood at $45.5 billion at the end of 2025. They rose steadily from $40.8 billion recorded at the beginning of that year.
Notably, this is the strongest balance since May 2013, when reserves reached about $48.51 billion.
Moreover, the apex bank projects reserves could rise further to $51 billion before the end of 2026.
Key Drivers of the Reserve Growth
Cardoso attributed the surge in reserves to several key factors.
First, favourable trade dynamics strengthened the current account.
Second, Nigeria recorded a healthy current account surplus.
In addition, non-oil exports increased significantly.
He stressed that market confidence played a central role in the outcome.
According to him, consistent policy direction and transparency improved investor sentiment. The bank also engaged international stakeholders and fulfilled its commitments. Consequently, positive market perception supported reserve accumulation.
Sustainability and Emerging Risks
Despite the strong performance, Cardoso warned that risks remain.
He noted that global economic shocks could disrupt projections. Oil price volatility also poses uncertainty. Furthermore, unchecked pre-election spending may weaken fiscal stability.
He added that fiscal deficits require close monitoring in 2026. Therefore, policymakers must maintain consistency and avoid sudden policy reversals.
MPC Cuts Interest Rate to 26.50%
Meanwhile, the Monetary Policy Committee reduced the Monetary Policy Rate by 50 basis points to 26.50 percent from 27 percent. All committee members supported the decision.
The MPC retained the liquidity ratio at 30 percent. It also adjusted the standing facilities corridor to +50/-450 basis points around the MPR.
In addition, the committee maintained the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks. It kept the 75 percent CRR on non-TSA public sector deposits.
Inflation Declines for 11 Consecutive Months
Cardoso said the committee based its decision on a balanced risk assessment.
He noted that headline inflation declined year-on-year in January 2026. This marked the eleventh consecutive month of disinflation.
The downward trend reflects earlier monetary tightening measures. Exchange rate stability and improved food supply also supported the decline.
Furthermore, stronger export earnings and higher remittance inflows strengthened the balance of payments. These factors reinforced Nigeria’s external stability.
