Nigeria’s external reserves have recorded a notable recovery in May 2026, climbing by approximately $551 million within the first three weeks of the month.
According to data released by the Central Bank of Nigeria (CBN), gross external reserves increased from $48.34 billion on May 4 to $48.89 billion as of May 21, signalling a gradual improvement in the country’s external liquidity position.
Reversal After April Decline
The latest uptick marks a positive turnaround following consistent pressure on reserves throughout April. Reserves had fallen steadily during that period, dropping from $49.18 billion at the beginning of April to $48.36 billion by April 30.
This recent rebound comes amid ongoing efforts by the CBN to stabilise the foreign exchange market and build investor confidence.
CBN Governor’s Comments
CBN Governor Olayemi Cardoso described the reserve buffer as a critical pillar for economic stability.
“This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability,” Cardoso said after the latest Monetary Policy Committee meeting.
He had earlier cautioned against overreacting to minor fluctuations in reserve figures, noting that such movements are normal in the current market environment.
Broader Context
Nigeria’s external reserves have shown significant improvement over the past year following major foreign exchange reforms implemented under President Bola Ahmed Tinubu’s administration. However, the figures have experienced short-term volatility, with a previous decline of about $855 million recorded over five weeks in April and early May.
The CBN has set an ambitious target of reaching $51 billion in external reserves by the end of 2026 as part of its macroeconomic stabilisation agenda.
The recent increase in reserves is expected to provide some support for the naira and help ease pressure in the foreign exchange market, although analysts say sustained inflows from oil exports, foreign investments, and diaspora remittances will be crucial to maintaining this positive momentum.
