Nigeria’s foreign exchange reserves have come under fresh pressure, declining by approximately $855 million over a five-week period, according to data from the Central Bank of Nigeria (CBN).
The country’s gross external reserves fell from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026. This represents a 1.74% decline over the 36-day period.
Steady Weekly Decline
CBN figures show a consistent downward trend throughout April and into early May:
– Reserves stood at $49.133 billion on April 2 before dropping to $48.940 billion by April 7.
– By April 15, the balance had fallen to $48.675 billion.
– It further declined to $48.541 billion on April 20 and $48.364 billion by April 30.
– Reserves settled at $48.325 billion on May 7.
Despite the recent dip, Nigeria’s reserve position remains substantially stronger than a year ago. In early April 2025, reserves were at approximately $38.17 billion more than $10 billion lower than current levels.
Post-Reform Resilience
The improvement compared to the previous year stems from the Central Bank’s foreign exchange reforms under President Bola Ahmed Tinubu’s administration. These measures have attracted higher foreign portfolio inflows, boosted oil earnings, and enhanced market liquidity and transparency.
The recent decline reverses a short-term upward trend observed earlier in 2026, when reserves increased by about $509 million in the first 22 days of January. The CBN is yet to issue an official statement explaining the latest depletion.
Positive Outlook
Despite the drop, the Central Bank maintains an optimistic view. Officials have projected that external reserves could reach $51 billion by the end of 2026 as part of broader efforts to strengthen the economy and restore investor confidence.
External reserves serve as a key buffer for defending the naira, financing imports, meeting international obligations, and sustaining market confidence. The current level still provides comfortable cover for imports and reflects improved macroeconomic stability compared to the pre-reform era of multiple exchange rate windows and heavy central bank intervention. Analysts will be watching closely to see whether the downward trend continues or if stronger oil revenues and capital inflows can help rebuild the buffers in the coming months.
