**CBN Sounds the Alarm: Nigeria's Rising External Reserves at Risk** Nigeria's economic landscape has been looking up lately, with the country's gross external reserves hitting a 13-year high of $50.45 billion in February. This significant surge has bolstered confidence in the nation's foreign exchange position, with experts projecting that the reserves could reach their highest level in 15 years if the trend continues. However, the Central Bank of Nigeria (CBN) has sounded a warning bell, cautioning that several factors could threaten the stability of these rising reserves. **The CBN's Concerns** According to the CBN governor, Olayemi Cardoso, the country's economic gains are vulnerable to global oil price shocks, increased pre-election spending, and rising fiscal deficits. These factors, if not properly managed, could destabilize the economy and undermine the gains made so far. The CBN boss emphasized the need for consistency in policy formulation and warned against policy somersaults that could jeopardize the country's external reserves. **The Global Oil Price Factor** The global oil market is notoriously unpredictable, and Nigeria's economy is heavily reliant on oil exports. Any sudden disruption in oil prices could have a ripple effect on the country's foreign exchange earnings and, by extension, the stability of the external reserves. The CBN is therefore keeping a close eye on global developments to anticipate any potential shocks. **The Pre-Election Spending Risk** As Nigeria approaches the 2027 election season, there are concerns about the potential for increased pre-election spending. This could put pressure on the country's finances and, ultimately, threaten the stability of the external reserves. The CBN is urging caution and emphasizing the need for responsible fiscal management to ensure that the economy remains on a stable footing. **Conclusion** Nigeria's rising external reserves are a welcome development, but the CBN's warnings serve as a reminder that the economy is not out of the woods yet. The country must remain vigilant and proactive in addressing potential threats to the stability of its external reserves. By doing so, Nigeria can continue to build on its economic gains and create a more sustainable future for its citizens.