External reserves shed $855 million in five weeks

Nigeria’s external reserves declined by approximately $855 million within five weeks, falling from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026.

This is according to the latest figures released by the Central Bank of Nigeria (CBN).

The development reflects renewed pressure on the country’s foreign exchange buffers, even as reserve levels remain significantly higher than the position recorded during the same period last year.

Data from the apex bank showed that gross external reserves dropped steadily throughout April and into the first week of May, raising fresh concerns over the sustainability of foreign exchange inflows amid growing demand pressures in the currency market.

What the data is saying 

CBN data showed that Nigeria’s external reserves fell by about 1.74% over the 36-day period.

The reserves recorded consistent declines across the review period.

• Reserves fell from $49.133 billion on April 2 to $48.940 billion on April 7
• The balance declined further to $48.675 billion on April 15
• External reserves dropped to $48.541 billion on April 20
• By April 30, reserves had weakened to $48.364 billion before settling at $48.325 billion on May 7

Despite the recent decline, the reserve position remains significantly stronger than levels recorded during the same period in 2025.

The data showed that Nigeria’s reserves stood at $38.173 billion on April 2, 2025, before declining to $37.933 billion by the end of that month, indicating that current reserve levels are over $10 billion higher year-on-year.

Get up to speed 

Nigeria’s external reserves had strengthened significantly over the past year following foreign exchange reforms introduced by the Central Bank of Nigeria under President Bola Ahmed Tinubu’s administration.

Nairametrics reported that the reserves had declined from above $50.08 billion on March 12 to $49.61 billion by March 23.

• In January 2026, reserves rose by about $509 million within the first 22 days, signalling improved inflows at the time.
• The recent decline represents a reversal of that earlier upward trend.
• In October 2018, reserves dropped by $1.1 billion within two weeks, highlighting a pattern of short-term fluctuations.

The strong year-on-year improvement could be attributed to increased foreign portfolio inflows, improved oil export earnings, tighter monetary policy, reduced import demand, and reforms aimed at improving liquidity and transparency in the foreign exchange market.

CBN is yet to officially explain the reason for the recent depletion.

The reserves remain an important indicator of Nigeria’s ability to defend the naira, support imports, settle international obligations, and maintain investor confidence in the economy.

What you should know 

Prior to the reforms introduced under President Tinubu, Nigeria operated a tightly managed foreign exchange regime in which the central bank played a dominant role in supplying foreign currency and maintaining multiple exchange rate windows.

Despite the recent dip, the Central Bank of Nigeria maintains an optimistic outlook for the country’s external reserves.

• The apex bank had previously projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.
• The $51 billion projection forms part of a medium-term strategy to strengthen balance-of-payments resilience.
• (Nairametrics)