Nigeria’s external reserves declined by approximately $855 million within five weeks, dropping from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026, according to the latest figures released by the Central Bank of Nigeria (CBN).
The development has raised fresh concerns over pressure on the country’s foreign exchange buffers despite reserves remaining significantly higher than levels recorded during the same period last year.
Data from the apex bank showed that the reserves recorded a steady decline throughout April and into the first week of May, reflecting growing demand pressures in the foreign exchange market.
According to the figures, reserves fell from $49.133 billion on April 2 to $48.940 billion on April 7, before dropping further to $48.675 billion by April 15. The reserves later weakened to $48.541 billion on April 20 and eventually settled at $48.325 billion on May 7, representing a 1.74 per cent decline over the 36-day period.
Despite the recent decline, Nigeria’s reserve position remains stronger than what was recorded in the corresponding period of 2025. CBN data indicated that reserves stood at $38.173 billion on April 2, 2025, before declining to $37.933 billion at the end of that month, meaning current reserve levels are more than $10 billion higher year-on-year.
Analysts attributed the improved position to stronger foreign portfolio inflows, increased oil export earnings, tighter monetary policy measures, reduced import demand, and reforms aimed at improving liquidity and transparency in the foreign exchange market.
The decline in reserves comes amid ongoing reforms in Nigeria’s foreign exchange market introduced under the administration of President Bola Ahmed Tinubu. Earlier in the year, reserves had shown signs of recovery, rising by about $509 million within the first 22 days of January 2026.
However, the recent depletion represents a reversal of that earlier upward trend, with reserves also falling from above $50.08 billion in March to $49.61 billion by March 23.
Meanwhile, the naira has continued to show relative stability in the official foreign exchange market despite the reserve decline. The local currency closed the first trading week of May at N1,364 to the dollar, compared to N1,383/$ recorded two weeks earlier, indicating improved market confidence in ongoing reforms.
Analysts say reserve levels remain critical for defending the naira, supporting imports, meeting international obligations, and sustaining investor confidence in the economy.
The CBN has yet to officially explain the latest drawdown in reserves, although Governor Olayemi Cardoso had earlier maintained that fluctuations in reserves are normal under a more market-driven foreign exchange system.
The apex bank also projects that external reserves could rise to $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation strategy aimed at strengthening Nigeria’s external buffers and improving balance-of-payments resilience.
