Nigeria’s Foreign Reserves Fall $547 Million in Two Weeks Amid Market Pressures
Nigeria’s foreign reserves have declined by approximately $547 million over a 15-day period in March 2026, signaling renewed pressure on the country’s external buffers. Data from the Central Bank of Nigeria (CBN) shows the reserves fell from $50.03 billion on March 11 to $49.48 billion on March 26, marking a steady but notable drawdown below the $50 billion threshold. While the central bank has not yet explained the cause, analysts suggest the movement aligns with ongoing payment obligations in the foreign exchange market.
The decline is gradual rather than abrupt, with daily reductions occurring throughout the review period. From March 11 to March 26, reserves dipped in small increments—from $50.03 billion to $49.48 billion—highlighting a slow erosion of external buffers rather than a sudden shock. Historical data indicates this is not unusual; previous short-term fluctuations have also reflected the interplay of oil revenue changes, currency interventions, and external obligations.
Earlier in 2026, Nigeria’s reserves had shown a more positive trend, rising by $509 million in January, demonstrating improved inflows and investor confidence. The recent drawdown, however, represents a reversal of this growth, suggesting that external pressures and market dynamics are currently outweighing inflows. Comparisons with past events, such as the $1.1 billion drop in October 2018, show that such short-term swings are a recurring feature of Nigeria’s reserve patterns.
Despite the decline, the Central Bank of Nigeria remains optimistic about the country’s external position. The apex bank projects that foreign reserves could reach $51 billion by the end of 2026, as part of a medium-term strategy aimed at stabilizing the balance of payments and boosting economic resilience. These projections also support broader efforts to restore investor confidence and maintain macroeconomic stability.
For Nigerians and investors alike, the steady drawdown serves as a reminder of the sensitivity of the country’s reserves to global oil markets and domestic economic policy decisions. While the $547 million drop may raise short-term concerns, the central bank’s strategic outlook underscores ongoing measures to safeguard external liquidity and stabilize the nation’s economic trajectory.
source: nairametrics