Nigeria’s external reserves have dropped to $48.6 billion, declining by $1.38 billion within five weeks, raising fresh concerns about sustained pressure on the country’s foreign exchange buffers.
Data on the website of the Central Bank of Nigeria, analysed by Naira metrics, show that the reserves, which stood above $50 billion in February 2026, have steadily trended downward, reflecting ongoing interventions by the apex bank in the foreign exchange market as well as external obligations.
The decline underscores the apex bank’s continued efforts to stabilise the naira amid volatility in the FX market. Analysts note that such interventions, while necessary to support the currency, often come at the cost of reserve depletion, especially in periods of limited inflows.
The recent drop also coincides with broader macroeconomic adjustments, including efforts to unify exchange rates and improve liquidity in the official market. These reforms have increased demand for foreign exchange through formal channels, further exerting pressure on reserves.
Despite the decline, Nigeria’s reserves remain relatively strong compared to previous years. Earlier in 2026, reserves had climbed above $50 billion, supported by improved inflows and policy reforms aimed at restoring investor confidence and enhancing transparency in FX management.
Economic experts, however, warn that sustaining reserve levels will depend heavily on increased foreign exchange earnings from oil exports, diaspora remittances, and foreign investments. Without a significant boost in inflows, continued market interventions could further erode the buffer.
The trajectory of the reserves in the coming weeks is expected to be closely watched, particularly as the CBN balances currency stability with the need to preserve external reserves.
