Nigeria’s external reserves recorded an increase of 0.96 per cent or $364 million between April 30 and May 14, marking a potential turning point in the nation’s foreign currency position.
The Central Bank of Nigeria (CBN) reported that gross reserves climbed from $37.934 billion to $38.298 billion during the two-week period, after months of steady decline since their peak of $40.92 billion on January 6, 2025.
This rebound follows a challenging period triggered by pressure from external debt repayments, falling oil production, and volatile forex demand.
By the end of April, Nigeria had lost approximately $2.62 billion in reserves over four months, making this recent uptick a noteworthy shift in the country’s external accounts trajectory.
The rise in reserves reflects growing confidence in the CBN’s renewed FX market liberalization policies and efforts to boost transparency.
The bank’s pivot from aggressive currency defense to a more market-driven exchange rate management has curbed speculative demand and hoarding, conserving reserves for critical needs.
Also, efforts such as enhanced digital monitoring of FX flows and tighter oversight of foreign exchange usage and Bureau de Change operators have also limited leakages, promoting a more sustainable forex environment.
This has helped stabilise the Naira between N1,590 and N1,610 this year.
The Governor of the central bank, Mr Yemi Cardoso, highlighted the deliberate nature of the progress, stating, “This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.”
The country will be looking to oil prices further increasing to help bolster the nation’s reserves. Oil, which is Nigeria’s main export, account for more than 60 per cent of earnings while remittances and foreign capital investment among others account for the remaining.
Stakeholders have called for significant efforts from fiscal authorities to complement their monetary authority counterparts to help the country’s economy.