Nigeria’s External Reserves Drop by $855 Million in Five Weeks Amid Forex Pressure
Nigeria’s external reserves declined by approximately $855 million within five weeks, highlighting renewed pressure on the country’s foreign exchange position despite ongoing economic reforms by the Central Bank of Nigeria (CBN). Latest figures released by the apex bank showed that reserves dropped from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026.
Data from the CBN revealed that the reserves weakened steadily throughout April and into early May, reflecting increasing demand in the foreign exchange market. Analysts say the development could raise concerns over the sustainability of forex inflows and the country’s ability to maintain stability in the naira market. The reserve level fell by about 1.74% during the 36-day review period.
The decline followed a gradual downward trend recorded across several dates within the period. External reserves dropped from $49.13 billion on April 2 to $48.94 billion by April 7, before declining further to $48.67 billion on April 15. By April 30, reserves had weakened to $48.36 billion and later settled at $48.33 billion on May 7, according to CBN data.
Despite the recent losses, Nigeria’s reserve position remains significantly stronger compared to the same period in 2025. Figures showed that external reserves stood at $38.17 billion in April last year, indicating that the current balance is still over $10 billion higher year-on-year. Economists have linked the improvement to stronger oil earnings, increased foreign portfolio investments, tighter monetary policies, and ongoing foreign exchange reforms introduced under President Bola Ahmed Tinubu’s administration.
The CBN has not officially disclosed the reasons behind the recent depletion, but the reserves remain a critical measure of Nigeria’s economic strength, investor confidence, and ability to support imports and defend the naira. Despite the short-term decline, the apex bank maintains an optimistic outlook, projecting that reserves could rise to $51 billion before the end of 2026 as part of its broader economic stabilization strategy.
source: nairametrics