The Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Tuesday announced that Nigeria’s gross external reserves have climbed to $50.45 billion, marking the largest reserves level in more than a decade.
Speaking at a press briefing following the 304th meeting of the Monetary Policy Committee (MPC), Cardoso said the reserves, as of February 16, provide an import cover of 9.68 months for goods and services — far exceeding the commonly cited three-month adequacy threshold.
Foreign exchange (FX) reserves, held in foreign currencies such as dollars and euros, serve as a buffer to stabilize the domestic currency, meet international payment obligations, and support investor confidence.
Cardoso highlighted that the robust growth in reserves is underpinned by higher export earnings, increased diaspora remittances, sustained exchange rate stability, and improvements in the balance of payments. The central bank notes that the build-up has contributed to reduced volatility in the foreign exchange market, strengthened investor confidence, and enhanced Nigeria’s capacity to weather external shocks.
Analysts say that this reserves level could provide the government and the CBN with more room to support the naira, finance essential imports, and buffer against global market shocks. However, sustaining these reserves will depend on continued export growth, inflows from remittances, and careful macroeconomic management.
