NIGERIA’S EXTERNAL RESERVES ERASE EARLIER GAINS

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By; Ganiyat Sunmola

Nigeria’s external reserves declined from $49.18 billion on April 1 to $48.45 billion as of April 23, reflecting an average weekly drop of about $233 million.

This downturn marks a reversal of the earlier upward trajectory, with reserve movements often influenced by a combination of oil revenue fluctuations, foreign exchange interventions, and external debt obligations.

Data from the Central Bank of Nigeria showed that the reserves account lost approximately $731 million within the first three weeks of April 2026.

Despite the decline, CBN Governor Olayemi Cardoso has urged calm, expressing confidence in the country’s reserve position and insisting that recent developments should not raise alarm.

As part of its broader macroeconomic stabilisation and confidence-restoration agenda, the apex bank had earlier projected that reserves could climb to $51 billion by the end of 2026.

That target forms part of a medium-term strategy aimed at strengthening Nigeria’s balance-of-payments resilience.

A closer review of the figures showed that the sharpest decline occurred in early April before easing later in the month.

Between April 1 and April 10, reserves fell from $49.18 billion to $48.81 billion, indicating stronger outflows during that period.

From April 13 to April 17, the pace of decline slowed, with reserves dropping from $48.72 billion to $48.62 billion.

Between April 20 and April 23, reserves slipped slightly from $48.54 billion to $48.45 billion, suggesting relative moderation in outflows.

The April decline followed similar pressure in March, raising concerns over sustained external liquidity management.

In March, reserves dropped from over $50.08 billion on March 12 to $49.61 billion by March 23.

However, current reserve levels remain significantly above those recorded during the same period in 2025, when they stood at approximately $37.83 billion.

In January 2026, reserves had risen by about $509 million within the first 22 days, signalling stronger inflows at the time.

A similar pattern of short-term fluctuations was seen in October 2018, when reserves fell by $1.1 billion within two weeks.