May 25 (THEWILL) — Nigeria’s external reserves have staged a recovery after a difficult April marked by sustained declines linked to foreign exchange interventions, debt service obligations, and global market pressures.
Latest data from the Central Bank of Nigeria (CBN) showed that external reserves, which stood at $49.18 billion on April 1, weakened steadily throughout the month before rebounding in May.
The reserves declined to $48.94 billion by April 7 and further dropped to $48.63 billion by April 17. By April 30, the position had fallen to $48.36 billion.
However, the trend reversed in May as reserves climbed gradually from $48.34 billion on May 4 to $48.89 billion by May 21, reflecting a recovery of more than $500 million within the period.
The rebound comes amid efforts by monetary authorities to stabilise the foreign exchange market and rebuild investor confidence following months of volatility in global financial markets and pressure on emerging market currencies.
Speaking after the latest Monetary Policy Committee (MPC) meeting, CBN Governor, Olayemi Cardoso described the reserve level as a critical buffer supporting macroeconomic stability and exchange rate confidence.
“This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability,” Cardoso stated.
The CBN governor had earlier cautioned against overreaction to short-term reserve fluctuations during a briefing at the IMF Spring Meetings in April, noting that reserve movements are common in modern market systems.
Recent reserve movements reflect a broader trend seen over the past year following foreign exchange reforms introduced under President Bola Ahmed Tinubu’s administration.
It had previously been reported that reserves fell from above $50.08 billion in March to about $49.61 billion later in the month, while another decline of roughly $855 million was recorded over a five-week period.
Despite the recent fluctuations, the apex bank maintains that reserves remain at relatively strong levels, with projections indicating the position could rise toward $51 billion by the end of 2026 as reforms continue to attract foreign exchange inflows and support macroeconomic stability.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
