Nigeria’s gross external reserves declined slightly to US$49.49 billion as of May 15, 2026, but remain “robust” and sufficient to support about nine months of import cover, the Central Bank of Nigeria (CBN) said on Wednesday.
CBN Governor Olayemi Cardoso disclosed the figure at a press briefing in Abuja following the 305th meeting of the Monetary Policy Committee (MPC), noting that the level still reflects a strong external buffer for the economy.
The reserves compare with US$48.35 billion recorded at the end of March 2026, but are lower than the UA$50.45 billion reported in February, highlighting moderate month-to-month fluctuations in Nigeria’s external position.
Despite the marginal decline, the central bank said the reserve stock remains adequate to cushion the economy against external shocks and support exchange rate stability.
Cardoso said the current reserve position provides import cover of 9.04 months for goods and services, a level policymakers view as comfortable in managing external vulnerabilities.
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The CBN governor linked recent macroeconomic resilience to improved performance in both the oil and non-oil sectors.
He said Nigeria’s non-oil economy expanded in the fourth quarter of 2025, driven largely by services activities, including information and communication, transport, and storage.
The oil sector also recorded stronger growth, supported by improved refining output in the downstream segment, which has reduced reliance on imported refined products.
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According to the CBN, oil sector growth rose to 6.79 percent in the fourth quarter of 2025, up from 5.84 percent in the previous quarter, while non-oil growth increased slightly to 3.99 percent from 3.91 percent.
The central bank also reported that real gross domestic product (GDP) grew by 4.0 percent in the fourth quarter of 2025, compared with 3.98 percent in the preceding quarter, reflecting modest but steady economic expansion.
Cardoso said the combination of policy tightening, relative exchange rate stability and improved domestic food supply has helped support macroeconomic stability.
He added that the reserve position continues to reinforce investor confidence in the Nigerian economy despite global economic headwinds.
“This strong buffer reinforced investor confidence in the Nigerian economy and supported exchange rate stability,” he said.
However, the CBN warned that global risks remain elevated, including geopolitical tensions, disruptions in energy markets and tightening financial conditions.
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The bank also noted that global inflation is expected to rise in the near term, driven by higher energy and agricultural commodity prices as well as ongoing supply chain pressures.
Cardoso said many central banks around the world have adopted a cautious approach to monetary easing, opting to pause or slow rate cuts in response to persistent inflationary pressures.
He added that exchange rate volatility in several emerging markets is likely to sustain elevated price levels in the short to medium term.
Despite these risks, the CBN said Nigeria’s economic outlook remains broadly positive, with expectations that inflationary pressures could moderate over time.
The governor said the combined impact of previous policy tightening, exchange rate management and improved food production is expected to support a gradual return to disinflation.
Nigeria has in recent months pursued tighter monetary policy as part of efforts to stabilise prices, attract foreign capital and strengthen external buffers.
The MPC has maintained a hawkish stance, reflecting concerns over inflation, currency pressures and global financial uncertainty.
Analysts say the latest reserve figures suggest Nigeria continues to maintain a relatively strong external position, although sustainability will depend on export earnings, capital inflows and oil production performance.
For now, the central bank insists the reserve level remains sufficient to support macroeconomic stability in the face of global uncertainty and domestic adjustment pressures.
