Nigeria’s external reserves witnessed a net increase of over $260 million within a single week, signalling a modest improvement in the country’s foreign account
Latest data from the Central Bank of Nigeria (CBN) revealed that the increase began on May 9, when reserves stood at $38.12 billion. The figure had risen to $38.21 billion by May 12. It continued the gain, reaching $38.30 billion on May 14 and $38.33 billion on May 15, before closing the week at $38.38 billion on May 16.
The rebound follows a challenging period caused by pressure from external debt repayments, falling oil production, and volatile forex demand.
By the end of April, the country had lost approximately $2.62 billion in reserves over four months.
This is as the gross external reserves climbed to a two-month high of $38.38 billion on May 16, 2025, the highest level since early March, 2025.
After the meeting of the Monetary Policy Committee on May 19 and 20, Governor of the CBN, Olayemi Cardoso, said it had implemented measures to shore up foreign exchange reserves, which were now yielding positive results.
The MPC also noted new policies introduced by the Federal Government to boost local production, reduce foreign exchange demand pressure, and lessen the pass-through of higher rates to domestic prices.
The rise in reserves reflects growing confidence in the CBN’s renewed FX market liberalisation policies and efforts to boost transparency.
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 the Naira stabilise between N1,590 and N1,610 this year.
“Given the relative stability in the foreign exchange market, members urge the bank to sustain the implementation of the ongoing reforms to further boost the economy,” Cardoso said during the briefing on Tuesday
At the beginning of the year, the reserves rose above $40 billion through much of January. The highest level was recorded on January 20 at $40.15 billion, dropping to $38.82 billion by February 18- it shed more than $1.3 billion in a single month.
The losses continued into March, with reserves falling to $38.35 billion by March 7 and further dipping as the month progressed. On March 28, reserves were at $38.31 billion, down from $38.57 billion as of March 20. This represented a drop of over $260 million in just under two weeks. The trajectory between late February and early March further confirmed the downward trend.
The reserves stayed in the $37 billion range for most of April and early May, staying at$38.01 billion on May 8. While they hovered around $38.09 billion and $38.10 billion on May 7 and 6, respectively, on May 2, the level was $38.01 billion, showing limited movement before the recent pickup.
In April, the reserves largely stayed below $38 billion, and on April 30, gross reserves were at $37.93 billion. They fell slightly to $37.79 billion by April 25 and stood at $37.83 billion on April 22.
Earlier in the month, April 15 saw the figure at $37.91 billion, while April 10 saw a slight increase to $38.03 billion. The highest point in April was on the 4th, when reserves rose to $38.13 billion, before slipping to $38.17 billion by April 2.
Experts have called for significant efforts from fiscal authorities to complement investors’ monetary authority counterparts to help the country’s economy.
-Advertisement-
Grab our latest Magazine, "Ayodele Akintunde, SAN: Legal Titan Celebrates and Reflects on His Life Journey.". Get your order fast and stress free.
For more details about Newswire Law&Events Magazine, kindly reach out to us on 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk. You will be glad you did
