Nigeria’s external reserves declined by approximately $731 million within the first three weeks of April 2026, highlighting sustained pressure on the country’s foreign exchange buffers.
Data from the Central Bank of Nigeria shows reserves fell from $49.18 billion on April 1 to $48.45 billion as of April 23, representing an average weekly decline of about $233 million. The trend reflects ongoing challenges faced by monetary authorities in balancing exchange rate stability, liquidity management, and external obligations.
The latest drawdown extends a broader pattern of reserve pressure in recent months, although CBN Governor Olayemi Cardoso has maintained that the decline is not a cause for concern.
Reserve data indicates that the sharpest drop occurred in the early part of April before moderating toward the latter half of the month. Between April 1 and April 10, reserves declined from $49.18 billion to $48.81 billion, suggesting stronger outflows during that period.
The pace of decline slowed between April 13 and April 17, with reserves easing from $48.72 billion to $48.62 billion. By April 20 to April 23, the decline had further moderated, with reserves slipping marginally from $48.54 billion to $48.45 billion, indicating reduced pressure.
The early-month drop is likely linked to increased foreign exchange interventions and the settlement of external obligations, while the slower pace later in the month may reflect reduced intervention activity or some improvement in inflows.
The April decline follows similar pressure recorded in March, when reserves fell from over $50.08 billion on March 12 to $49.61 billion by March 23. Despite the recent dip, reserve levels remain significantly higher than the same period in 2025, when they stood at approximately $37.83 billion.
Earlier in the year, reserves had shown signs of improvement, rising by about $509 million within the first 22 days of January 2026. The current trend therefore marks a reversal of that earlier momentum.
Historically, such short-term fluctuations are not unusual. For instance, reserves dropped by $1.1 billion within two weeks in October 2018, reflecting the influence of oil revenue volatility, FX interventions, and external payment obligations on reserve movements.
Despite the current decline, the CBN maintains a positive outlook, projecting that Nigeria’s external reserves could reach $51 billion by the end of 2026. This projection forms part of a broader strategy aimed at strengthening macroeconomic stability and improving balance-of-payments resilience.
