Nigeria’s external reserves have seen a significant boost, increasing by over $260 million within a single week.
According to the Central Bank of Nigeria (CBN), the reserves began rising on May 9, reaching $38.12 billion, and continued to climb to $38.38 billion by May 16.
This marked a two-month high and the highest level since early March 2025.
The rebound followed a challenging period caused by external debt repayments, falling oil production, and volatile forex demand.
The CBN’s efforts to shore up foreign exchange reserves are yielding positive results, with the Monetary Policy Committee (MPC) noting new policies to boost local production and reduce foreign exchange demand pressure.
CBN Governor Olayemi Cardoso stated that the rise in reserves reflects growing confidence in the bank’s renewed FX market liberalization policies and efforts to boost transparency.
Cardoso emphasised the importance of continued efforts to stabilize the foreign exchange market and attract investment.
Enhanced digital monitoring of FX flows and tighter oversight of foreign exchange usage have limited leakages, promoting a more sustainable forex environment.
This has helped stabilised the Naira between N1,590 and N1,610 this year.
The MPC urged the bank to sustain the implementation of ongoing reforms to further boost the economy.
In the first quarter of the year, Nigeria’s reserves showed significant fluctuations.
The reserves rose above $40 billion in January, peaking at $40.15 billion on January 20, before dropping to $38.82 billion by February 18, losing over $1.3 billion in a single month.
The losses continued into March, with reserves falling to $38.35 billion by March.
