Nigeria’s external reserves have fallen by about $855 million within five weeks, according to new figures released by the Central Bank of Nigeria (CBN).
The data showed that the country’s reserves dropped from $49.18 billion on April 1, 2026, to $48.33 billion as of May 7, 2026. This decline has raised fresh concerns about pressure on Nigeria’s foreign exchange market and the country’s ability to maintain strong dollar reserves.
Although the drop is noticeable, Nigeria’s reserve position is still much better than what was recorded during the same period in 2025.
According to the CBN figures, the reserves declined gradually throughout April and into the first week of May. Analysts believe this reflects increasing demand for foreign exchange, even as inflows into the economy face pressure.
The data showed that the reserves fell by about 1.74 percent during the 36-day period.
A breakdown of the figures revealed the steady decline:
Reserves dropped from $49.133 billion on April 2 to $48.940 billion on April 7.
By April 15, the balance had reduced further to $48.675 billion.
On April 20, reserves declined again to $48.541 billion.
At the end of April, the figure weakened to $48.364 billion.
By May 7, reserves settled at $48.325 billion.
Despite the recent reduction, the reserves remain over $10 billion higher than the level recorded at the same time last year.
CBN data showed that Nigeria’s reserves stood at $38.173 billion on April 2, 2025, before falling slightly to $37.933 billion by the end of that month.
The stronger reserve position seen over the past year has largely been linked to foreign exchange reforms introduced under the administration of President Bola Ahmed Tinubu.
These reforms were aimed at improving transparency and liquidity in the foreign exchange market. They also encouraged more foreign investors to participate in Nigeria’s economy.
Earlier in 2026, Nigeria experienced a temporary improvement in reserves. In January, the reserves increased by about $509 million within the first 22 days of the year, showing signs of stronger foreign exchange inflows at the time.
However, the recent decline suggests that the earlier gains may be slowing down.
This is not the first time Nigeria’s reserves have experienced short-term fluctuations. In October 2018, the country’s reserves reportedly fell by $1.1 billion within two weeks, highlighting how quickly reserve levels can change depending on market conditions.
Economic experts say several factors may have contributed to the stronger year-on-year reserve position. These include higher oil export earnings, increased foreign portfolio investments, tighter monetary policies, lower import demand, and ongoing reforms in the foreign exchange market.
So far, the CBN has not officially explained the latest decline in reserves.
Nigeria’s external reserves are considered important because they help the country support the naira, pay international obligations, finance imports, and maintain investor confidence in the economy.
Before the current reforms introduced by the Tinubu administration, Nigeria operated a heavily controlled foreign exchange system where the central bank managed multiple exchange rate windows and played a major role in supplying foreign currency.
Despite the recent drop, the CBN still maintains a positive outlook for Nigeria’s external reserve position in the coming months.
