Nigeria’s foreign exchange reserves have reached a significant milestone, with the gross reserves now standing at $50.4 billion as of mid-February 2026, marking the highest level in the past 13 years, offering a strong indicator of the country’s economic resilience and positive outlook.
This was confirmed by the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, during today’s Monetary Policy Committee (MPC) briefing.
Positive Economic Signals Driving Reserve Accretion
The rise in Nigeria’s foreign reserves is underpinned by several key economic drivers, reflecting a broader strengthening of the nation’s macroeconomic fundamentals.
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Favourable Trade Developments: Nigeria has enjoyed positive shifts in its trade dynamics, leading to a healthy surplus in the current account. This surplus has provided the necessary cushion for the growing reserves.
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Surge in Non-Oil Exports: Another vital factor has been the sustained rise in non-oil exports, which has further boosted Nigeria’s foreign exchange inflows. The government’s focus on diversifying the export base, particularly in agriculture and manufacturing, has begun to bear fruit.
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Diaspora Remittances: As in previous years, remittances from the Nigerian diaspora have continued to play a crucial role. The increase in remittance flows highlights the strong connection between Nigerians abroad and their home country, providing a stable source of foreign currency.
However, according to Governor Cardoso, the cornerstone of these achievements is market confidence. “Without market confidence, no matter how positive the macroeconomic indicators, you will not be able to optimise economic outcomes,” he remarked.
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Over the past years, the CBN has made concerted efforts to build trust in the country’s foreign exchange framework by engaging in international forums, being transparent about policy intentions, and ensuring that commitments made were consistently followed through. These efforts have contributed significantly to the rise in reserves and have helped establish a positive outlook in the global market.
Risks and Challenges Ahead
Despite the positive trajectory, there are risks that could affect the sustainability of Nigeria’s reserve growth. Governor Cardoso highlighted potential global shocks that could disrupt the country’s progress. The uncertainty surrounding oil prices, in particular, remains a major concern. Oil remains a significant contributor to Nigeria’s foreign exchange reserves, and any volatility in global oil markets could impact this vital revenue stream.
Additionally, the Governor warned about pre-election spending and its potential to destabilise the economic progress achieved so far. He emphasised the need for fiscal discipline and effective management of fiscal deficits, stressing that any deviation from policy consistency could undermine the gains made in recent years.
En route to break 20 years highest reserve record
The highest level of Nigeria’s foreign reserves in the last 20 years occurred in 2008, when they reached approximately $62 billion. This peak was driven by high oil prices and significant foreign inflows into the country at the time.
Since then, the reserves have fluctuated, especially impacted by global oil price changes, economic policies, and external shocks, such as the COVID-19 pandemic and fluctuations in oil production.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
