Nigeria's External Reserves Drop $855 Million in Five Weeks

Nigeria's external reserves experienced a decline of $855 million within a five-week period, dropping from $49.18 billion on April 1, 2026, to $48.33 billion on May 7, 2026, according to data released by the Central Bank of Nigeria (CBN). This decline raised concerns about sustaining foreign exchange inflows amid growing demand pressures in the currency market.

The reserves fell by 1.74% during this period, despite remaining significantly higher than levels recorded in the same timeframe last year, when reserves stood at $38.173 billion on April 2, 2025. The current reserve level is approximately $10 billion higher year-on-year.

The decline is attributed to increased foreign portfolio inflows, improved oil export earnings, and tighter monetary policies aimed at reducing import demand. The CBN has not officially explained the reasons for the recent depletion of reserves, which are crucial for defending the naira and maintaining investor confidence in the economy.