Data
Nigeria’s External Reserves Drop By $855 Million In Five Weeks
Nigeria’s external reserves declined by approximately $855 million within five weeks, reflecting renewed pressure on the country’s foreign exchange buffers amid sustained demand in the currency market and persistent global economic uncertainties.
Latest figures released by the Central Bank of Nigeria showed that the country’s gross external reserves fell from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026.
The decline represents a drop of about 1.74 per cent over a 36-day period, according to data compiled from the apex bank’s reserve position records.
The reserve drawdown comes despite a strong year-on-year improvement in Nigeria’s foreign reserve position compared to levels recorded during the same period in 2025.
Data from the central bank indicated that reserves declined steadily throughout April and into the first week of May, raising concerns over the sustainability of foreign exchange inflows as pressure persists within the foreign exchange market.
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Figures released by the apex bank showed that reserves fell from $49.133 billion on April 2 to $48.940 billion on April 7, before declining further to $48.675 billion by April 15.
The reserve position weakened further to $48.541 billion on April 20 and dropped again to $48.364 billion by April 30 before settling at $48.325 billion on May 7.
The latest decline marks a reversal of the upward trend recorded earlier in the year when improved inflows supported reserve accretion.
In January 2026, Nigeria’s reserves rose by about $509 million within the first 22 days of the year, reflecting stronger foreign exchange inflows and improved market sentiment following policy reforms introduced by the central bank.
The country’s reserve position had also strengthened significantly over the past year after foreign exchange reforms implemented under President Bola Ahmed Tinubu’s administration aimed at improving liquidity, enhancing transparency, and attracting foreign capital into the economy.
Earlier reports showed that reserves had declined from above $50.08 billion on March 12 to $49.61 billion by March 23, indicating that the current trend of reserve depletion has persisted for several weeks.
Despite the recent decline, Nigeria’s reserves remain substantially stronger than levels recorded during the same period last year.
Central bank data showed that reserves stood at $38.173 billion on April 2, 2025, before declining to $37.933 billion at the end of that month. This indicates that the current reserve level is more than $10 billion higher on a year-on-year basis.
The improvement was also supported by policy measures designed to restore investor confidence and stabilise the naira after prolonged volatility in the currency market.
However, the recent decline in reserves has renewed concerns over Nigeria’s ability to sustain foreign exchange stability amid rising demand pressures and external obligations.
The Central Bank of Nigeria has not officially disclosed the specific reasons behind the latest depletion in reserves.
Market analysts said external reserves remain vulnerable to fluctuations in global crude oil prices, capital flow movements, external debt obligations, and interventions aimed at stabilising the local currency.
Nigeria’s reserves remain a critical indicator of the country’s capacity to support imports, defend the naira, meet international payment obligations, and maintain investor confidence.
Economic observers noted that reserve levels are closely monitored by foreign investors and credit rating agencies because they provide insight into the country’s external liquidity position and ability to absorb external shocks.
The latest decline also comes at a time when several emerging markets are facing tighter global financial conditions, elevated borrowing costs, and heightened geopolitical uncertainties affecting commodity markets and capital flows.
They added that Nigeria’s reserve outlook would likely depend on the performance of crude oil exports, the pace of foreign capital inflows, and the effectiveness of ongoing monetary and fiscal reforms aimed at improving macroeconomic stability.
The movement in reserves is expected to remain a key focus for investors and policymakers as authorities continue efforts to stabilise the economy and strengthen confidence in the foreign exchange market.