Nigeria's FX Reserves Drop by $263 Million, Ending 25-Week Growth Streak

Nigeria's foreign exchange reserves dropped by $263 million to $45.21 billion as of December 17, 2025, marking the first decline in 25 weeks, according to the Central Bank of Nigeria (CBN). Despite earlier strong growth, the reserves slipped due to various factors, including a decrease in FX inflow and a sharp fall in foreign portfolio inflow and foreign direct investment (FDI).

The decline was attributed to factors like controversial capital gain tax, debt repayments, and increased FX demand. Nigeria's reserves, although robust, face renewed pressure amid these challenges.