Nigeria’s Foreign Reserves Rebound by $551 Million in May, Boosting Confidence in Economy and Naira Stability
Nigeria’s foreign reserves have recorded a remarkable recovery, rising by approximately $551 million within the first three weeks of May 2026, signaling renewed strength in the country’s external finances and boosting confidence in the foreign exchange market. Fresh data released by the Central Bank of Nigeria (CBN) showed that gross external reserves increased from $48.34 billion on May 4 to $48.89 billion as of May 21, reversing the downward trend witnessed in April.
The rebound comes after a challenging period for the nation’s reserves, which faced pressure from foreign exchange interventions, external debt obligations, and global market uncertainties. Throughout April, reserves steadily declined from $49.18 billion on April 1 to $48.36 billion by the end of the month, raising concerns among investors and market observers about Nigeria’s external liquidity position.
However, the latest figures indicate a positive turnaround. Analysts believe the recovery reflects stronger foreign exchange inflows and improving market confidence following ongoing reforms in the foreign exchange sector. The steady rise in reserves is expected to provide additional support for exchange rate stability while strengthening the country’s ability to meet international payment obligations.
Speaking after the most recent Monetary Policy Committee (MPC) meeting, CBN Governor Olayemi Cardoso described the reserve position as a critical pillar of investor confidence. According to him, the healthy reserve buffer continues to reassure investors about the resilience of the Nigerian economy and the stability of the foreign exchange market. He also urged Nigerians not to overreact to short-term fluctuations in reserve figures, noting that such movements are common in modern financial markets.
The recovery further reinforces the impact of recent foreign exchange reforms introduced under the administration of Bola Ahmed Tinubu. Although Nigeria’s reserves had earlier declined by about $855 million within five weeks, the current rebound suggests renewed momentum toward the CBN’s target of increasing reserves to $51 billion by the end of 2026. If sustained, the upward trend could strengthen investor sentiment, support the naira, and improve overall economic stability in the months ahead.
source: nairametrics