Nigeria’s foreign exchange (FX) reserves have recorded the first decline in 25 weeks, falling by $263.151 million (equivalent of N381.569 billion) to $45.21 billion as of December 17, 2025, according to new data from the Central Bank of Nigeria (CBN).
The drop, which followed three consecutive days of outflows between December 15 and 17, marks a reversal of a long-running accumulation trend that pushed reserves to their highest level in six years.
The contraction ended a sustained build-up that had peaked at $45.472 billion on December 12.
By December 17, reserves had slipped to $45.209 billion, signalling renewed pressures on Nigeria’s external position.
The decline comes despite strong growth earlier in the year. CBN data shows that Nigeria’s gross official reserves rose by $1.5 billion month-on-month to $44.7 billion at end-November 2025.
Over the 11 months to November, reserves gained $3.8 billion, and by $7.5 billion since June, when they were at their year-to-date lows. A key driver was the $2.4 billion Eurobond issuance in November, part of which refinanced a $1.2 billion Eurobond maturity.
Nigeria’s reserves remained robust before the December decline, providing 13.9 months of merchandise import cover and 9.4 months when services were included, according to the balance of payments to March 2025.
FX inflows plunged by 67% month-on-month to $2.0 billion in November, the lowest since July 2024. Foreign portfolio inflows fell sharply to $593 million from $3.5 billion, while FDI collapsed to $10.4 million from $221 million, heightening pressure on the naira. Analysts blamed the reversals on the controversial Capital Gains Tax (CGT).
As in previous years, holiday travel, import settlements, and retail stockpiling intensified FX demand. Despite stronger reserves in November, the naira still weakened modestly as these pressures built.
Nevertheless, Nigeria’s reserve buffers remain significantly higher than the $40.19 billion recorded at end-2024 and $33.22 billion in 2023. Yet the timing of the decline underscores lingering fragility, especially as FX demand rises and global financial conditions tighten.
The reserves continue to provide strong import cover, but analysts warn that any prolonged period of subdued inflows or heavier repayments could weaken the naira stability profile.