Nigeria’s foreign exchange (FX) reserves fell marginally to $55.09 billion on October 14, ending a nearly three-month period of sustained growth.
This was revealed by data from the Central Bank of Nigeria (CBN). The data noted that the reserves declined from $55.1 billion recorded on October 13, representing a decrease of approximately $10 million.
The last recorded decline before the latest dip was on July 28, when the reserves stood at $51.94 billion.
The country’s external reserves fluctuated in late July before beginning a gradual recovery in August.
CBN data showed that reserves stood at $52.03 billion on July 21, rose marginally to $52.04 billion the following day, and subsequently declined to $51.94 billion on July 28. By July 30, they had fallen further to $51.92 billion.
The reserves began recovering in August, rising to $51.94 billion on August 3, $52 billion on August 5 and $52.14 billion on August 10, before climbing to $55.1 billion on October 13.
Despite the latest decline, the reserves remained approximately $3.15 billion higher than the $51.94 billion recorded on July 28.
Nigeria’s external reserves serve as a buffer against external economic shocks and help the CBN meet international payment obligations and support foreign exchange market stability.
Reserve levels are also closely watched as an indicator of the country’s capacity to meet external obligations and withstand pressure on the naira.
However, a single day’s marginal decline does not necessarily indicate a sustained deterioration in the country’s external position.
The reserves’ trajectory comes amid efforts by the CBN to reform the foreign exchange market, improve liquidity and strengthen confidence in the naira.
The ICIR reports that in April, Fitch Ratings projected that Nigeria’s foreign exchange reserves could decline to $47 billion by the end of 2026.
The forecast also highlighted the difference between the headline level of gross external reserves and the longer-term sustainability of those reserves.
The projection suggests that the recent increase in reserves may not be sustained throughout the year, depending on foreign exchange inflows, external payments and other pressures on the country’s balance of payments.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.