Nigeria's Foreign Exchange Reserves Reach $48.5 Billion, Highest Level in Nearly 13 Years
Nigeria's foreign exchange reserves have achieved a significant milestone, climbing to $48.5 billion, marking the highest level recorded in nearly 13 years. This surge represents a substantial strengthening of the country's external position and provides a major boost to the naira's stability amid ongoing economic reforms.
Steady Accumulation and Consistent Growth
The latest figures from the Central Bank of Nigeria reveal that reserves reached $48.5 billion on Tuesday, February 17, 2026. This represents the strongest position since May 14, 2013, when reserves stood at approximately $48.51 billion. The steady rise reflects sustained momentum in reserve accumulation rather than a temporary spike, with reserves increasing from $45.56 billion recorded on January 1, 2026, representing a gain of $2.94 billion or 6.45 percent so far this year.
Just one day before reaching this new high, reserves were at $48.36 billion, highlighting a consistent upward trend that demonstrates growing confidence in Nigeria's economic management and reform initiatives.
Implications for Naira Stability and Economic Confidence
The rebound in reserves comes as policymakers intensify efforts to stabilize the naira and strengthen liquidity in the foreign exchange market. Higher reserves typically enhance a country's ability to defend its currency, manage exchange rate volatility, and cushion against external economic shocks.
Foreign exchange reserves, which consist of foreign currency assets held by a nation's monetary authority, serve multiple critical functions. They back liabilities, influence monetary policy, and act as a confidence booster for international investors by demonstrating a country's capacity to meet international obligations and finance essential imports.
Analysts believe the latest surge could offer stronger support for the naira in the coming months. With a healthier reserve buffer, monetary authorities are better positioned to intervene when necessary and smooth out market pressures, creating more favorable conditions for currency stability.
Reforms Begin to Yield Tangible Results
The recent gains are widely seen as validation of foreign exchange reforms introduced by the central bank to improve transparency, boost foreign exchange supply, and attract capital inflows. On February 10, 2026, CBN Governor Olayemi Cardoso reaffirmed the bank's resolve to protect the naira and reinforce the country's reserve buffers, stating that the apex bank would do "whatever it takes" to safeguard the currency's value while strengthening Nigeria's external position.
The central bank has outlined broader macroeconomic ambitions ahead of 2030, including achieving single-digit inflation and building a more resilient reserve base driven by non-oil exports, foreign direct investment, and diaspora remittances.
Projected Growth and Economic Outlook
In its December 22, 2025 projection, the CBN forecast that external reserves would climb further to $51.04 billion in 2026, anchored on sustained foreign exchange reforms and improved inflows. The latest data suggest that the country may be on track to meet or even surpass that target if current trends continue.
"Reforms in the foreign exchange market are expected to sustain exchange rate stability, while external reserves are projected to increase to US$51.04 billion," the bank stated in its projection.
With reserves now at a 13-year high, policymakers are aiming to consolidate macroeconomic stability and restore investor confidence in Africa's largest economy. Experts say if sustained, the build-up could improve Nigeria's credit outlook, provide stronger import cover, and give monetary authorities more flexibility in navigating global economic headwinds.
Market Response and Expert Analysis
Janet Ogochukwu, a senior banker and economist, told media outlets that "The robust reserves is also a massive booster and buffer for the naira. Recently, the CBN resumed dollar interventions in the parallel market, which has closed the yawning gap between the two windows."
For the naira, the message is clear: a stronger reserve position offers a firmer foundation for stability and renewed gains. The naira recorded a strong rebound in the parallel market on Monday, February 16, 2026, appreciating to N1,390 per dollar and further closing the gap with the official foreign exchange window. This represents a 2.16 percent gain compared to the N1,420 quoted the previous Friday, with street traders confirming the local currency gained N30 within one trading session, reflecting renewed confidence and improved dollar liquidity in the informal market.
