Nigeria’s External Reserves Climb to $49bn on FX Reforms
Nigeria’s foreign exchange reserves have reached a significant milestone, climbing to $49 billion as of February 5, 2026, a key indicator of strengthening macroeconomic stability and rising investor confidence in Africa’s largest economy, the Central Bank of Nigeria (CBN) has reported.
According to CBN Governor Olayemi Cardoso, the external reserves figure reflects a 4.93 per cent increase from the previously reported $46.7 billion and marks a remarkable recovery from a low of around $3 billion when the current leadership assumed office.
He disclosed the figures on Monday at the second edition of the National Economic Council (NEC) Conference in Abuja, underscoring the significance of the uptick amid ongoing economic reforms.
The growth in reserves, Cardoso explained, can be attributed in large measure to a combination of market-driven foreign exchange reforms and stronger remittance flows from Nigerians in the diaspora. Under the current framework, the CBN allows the foreign exchange market to play a larger role in determining prices, stepping in only selectively to buy FX as necessary.
This approach has contributed to reducing the premium between official and parallel market exchange rates to under two per cent, a marked improvement compared with past disparities.
Remittances have emerged as a critical pillar of the reserves buildup, with Nigerians abroad sending increased funds home, thus helping to replenish the external buffers. “Remittances have made a big difference to how we have grown our reserves,” Cardoso said, noting the diaspora’s contribution to stabilizing the country’s foreign exchange position.
The central bank’s reforms have also made foreign exchange more accessible to ordinary Nigerians, including travellers, by easing access to FX for genuine needs. Cardoso emphasized that a more competitive naira has reduced the fear of holding the local currency for transactions abroad, a shift from earlier market dynamics.
Economists see the strengthening reserve position as a positive signal for Nigeria’s external sector, especially in the context of global economic uncertainties and fluctuating commodity earnings. A robust reserve cushion not only supports currency stability but also enhances the nation’s ability to meet external obligations and cover import needs.
However, the CBN governor cautioned that sustaining these gains will require continued policy discipline and inclusive coordination across government levels.
He also highlighted the importance of state cooperation in maintaining investor confidence and ensuring that the gains from reserve accretion translate into broader economic benefits.
The $49 billion reserve milestone stands as one of the most significant improvements in recent Nigerian economic history, reflecting ongoing efforts to stabilize the foreign exchange market and build resilience against external shocks.
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