“Gross external reserves surpass $50 billion, providing nearly 10 months of import cover, while year-on-year inflation eases for the eleventh consecutive month, prompting a 50bps reduction in the Monetary Policy Rate to 26.5%.”

Sopuruchi Onwuka

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Nigeria’s gross external reserves rose to the highest level in 13 years, breaching $50.45 billion as of February 16, providing an estimated 9.68 months of import cover for goods and services, the Central Bank of Nigeria (CBN) has said.

Governor Olayemi Cardoso announced the figures at a press briefing in Abuja following the 304th Monetary Policy Committee (MPC) meeting.

He said the Committee decided to reduce the Monetary Policy Rate (MPR) by 50 basis points to 26.5 percent, while retaining the Standing Facilities Corridor (SFC) at +50/-450 basis points and keeping the Cash Reserve Requirement (CRR) unchanged at 45 percent for Money Deposit Banks, 16 percent for merchant banks, and 75 percent for non-TSA public sector deposits.

Cardoso highlighted the strong performance of Nigeria’s external sector, driven by higher export earnings and increased remittance inflows.

“This has contributed to greater stability in the foreign exchange market and bolstered investor confidence,” he said.

He also welcomed the recently issued Presidential Executive Order 09, which directs oil and gas revenues into the Federation Account, noting its potential to improve fiscal revenue and reserves.

The MPC’s decision to ease the MPR reflects a “balanced evaluation of risks to the outlook,” Cardoso said, pointing to an ongoing disinflation trend supported by prior monetary tightening, exchange rate stability, and improved food supply.

Year-on-year headline inflation in January 2026 eased to 15.10 percent from 15.15 percent in December 2025, marking the eleventh consecutive month of decline.

Food inflation fell to 8.89 percent from 10.84 percent, while core inflation declined to 17.72 percent from 18.63 percent. Month-on-month, headline inflation dropped to -2.88 percent from 0.54 percent in the previous month.

Cardoso also noted the resilience of the banking sector, with most key financial soundness indicators remaining within regulatory thresholds. Of the 33 banks that raised additional capital under the ongoing recapitalization program, 20 have now met the new minimum capital requirement.

The MPC emphasized the importance of completing the exercise to strengthen the financial system and support sustainable economic growth.

On economic activity, the Purchasing Managers’ Index (PMI) stood at 55.7 points in January 2026, indicating continued expansion and likely improvement in output in the fourth quarter of 2025.