By Osordi Ayomide
Nigeria’s foreign reserves declined by approximately $731 million within the first three weeks of April 2026, underscoring persistent pressure on the country’s foreign exchange position.
Figures from the Central Bank of Nigeria (CBN) show that gross reserves fell from $49.18 billion on April 1 to $48.45 billion as of April 23, reflecting a steady drawdown over the period.
This development highlights the delicate balance monetary authorities must maintain between exchange rate stability, liquidity management, and meeting external obligations.
Financial analysts attribute the decline to a combination of factors, including foreign exchange interventions, external debt servicing, and moderate inflows from oil exports.
The apex bank has intensified efforts in recent months to stabilize the naira, a move that often requires the periodic utilization of reserves.
The latest drop extends a broader trend observed in recent weeks, despite earlier gains that saw reserves approach the $50 billion threshold.
Market watchers suggest the renewed decline signals ongoing demand pressures in the FX market.
“There is still significant strain on the system, particularly from import demand and capital outflows,” a Lagos-based economist noted, adding that reserve movements remain sensitive to global oil prices and investor confidence.
While the decline may raise concerns regarding the sustainability of current interventions, experts maintain that Nigeria’s reserve position remains relatively robust compared to previous years.
They point to expected inflows from crude oil sales, diaspora remittances, and foreign portfolio investments as potential buffers that could support reserves in the coming months.
The CBN has reiterated its commitment to ensuring adequate reserve levels while sustaining orderly market conditions, as policymakers continue to navigate a complex domestic and global economic environment.
