MPC: Gross external reserves hit $50.45bn as of Feb 16, 2026, highest in 13 years, says Cordoso….reduce MPR to 26.5%, CRR 45.00%, LR 75%

By Onu Okorie 

The Governor of the Central Bank of Nigeria CBN Olayemi Cardoso has disclosed that the country’s 

Gross external reserves rose significantly to US$50.45 billion as of February 16, 2026,  the highest in 13 years. He stated this during the press briefing after the 304th Monetary Policy Committee meeting yesterday in Abuja.

He explained that the amount will provide an import cover of 9.68 months for goods and services. 

He said that the MPC particularly noted the remarkable performance of Nigeria’s external sector, evidenced by the robust accretion to foreign exchange reserves, supported by higher export earnings and increased remittance inflows. 

“This has contributed to greater stability in the foreign exchange market and bolstered investor confidence. Members also welcomed the newly issued Presidential Executive Order 09 which redirects oil and gas revenues into the Federation Account” he said.

The Apex Bank Governor also explained that the Committee decided to reduce the Monetary Policy Rate by 50 basis points to 26.5 per cent; retain the Standing Facilities Corridor around the MPR at +50/-450 basis points; retain the Cash Reserve Requirement CRR for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.

Speaking further Cordoso noted that the Committee’s decision was premised on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation trajectory would continue, largely supported by 

the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.

According to him, “in reaching this policy decision, the Committee took into account the sustained deceleration in year‑on‑year headline inflation in January 2026, marking the eleventh consecutive month of decline. 

“This downward trajectory in inflation was driven mainly by the continued effects of the contractionary monetary policy, stability in the foreign exchange market, robust capital inflows, and improvement in the balance of payments. 

“The momentum was further 

reinforced by relative stability in the prices of petroleum products and improved food supply conditions, especially staples. These outcomes have indicated that prior tightening has 

continued to anchor expectations.”

The CBN Governor also said that the Committee acknowledged the potential impact of the Order in improving fiscal revenue and accretion to reserves. And given these improved macroeconomic conditions, the Committee believed that a moderate easing was consistent with the prevailing inflation dynamics.

He  acknowledged the continued resilience of the banking sector, with most of the key financial soundness indicators remaining within regulatory thresholds. With regards to the ongoing recapitalization programme, the Committee noted that of the 33 banks that have raised additional capital, twenty 20 have met the new minimum capital requirement, reaffirming steady progress towards a more robust and well‑capitalized financial system.

The MPC reiterated the strategic importance of the recapitalization exercise and urged the Bank to ensure its successful completion. This would reinforce financial system resilience 

and enhance the sector’s capacity to support sustainable economic growth.

Speaking on other Domestic Developments, he said that headline inflation (year-on-year) eased to 15.10 per cent in January 2026, from 15.15 per cent in December 2025, reflecting a moderation across both the food and core components. Food inflation declined markedly to 8.89 per cent from 10.84 per cent over the same period, supported by improved domestic food supply, sustained exchange rate stability, and favourable base effect. Similarly, core inflation declined to 17.72 per cent from 18.63 per cent, driven largely by moderation in the average prices of Information & Communication 

services. Month‑on‑month, headline inflation declined to -2.88 per cent in January 2026 from 0.54 per cent in the preceding month, indicating a continued softening of price pressures.

“In terms of output, the Purchasing Managers’ Index (PMI) stood at 55.7 points in January 2026, reflecting continued expansion in economic activities and likely improvement in 

output in the fourth quarter of 2025.”