CBN records strong rebound as external reserves recover from April decline and investor confidence improves…..
Nigeria’s foreign exchange reserves recorded a significant recovery in May 2026, rising by over $551 million within the first three weeks of the month after facing sustained pressure throughout April.
Latest figures released by the Central Bank of Nigeria (CBN) show that the country’s gross external reserves increased from $48.34 billion on May 4 to $48.89 billion as of May 21, signaling renewed strength in Nigeria’s external liquidity position.
The rebound marks a notable turnaround after weeks of consistent decline triggered by foreign exchange interventions, external debt obligations, and global market uncertainties.
Data from the apex bank showed that reserves stood at $49.18 billion on April 1 before dropping steadily to $48.94 billion by April 7.
The downward trend continued through the month, with reserves falling further to $48.63 billion by April 17 before closing April at $48.36 billion.
However, May brought a sharp reversal in fortunes as reserves began climbing gradually, adding more than half a billion dollars within just a few weeks.
The improvement is expected to boost confidence in Nigeria’s foreign exchange market, especially at a time when investors and businesses remain sensitive to liquidity levels and exchange rate stability.
Speaking after the latest Monetary Policy Committee (MPC) meeting, CBN Governor Olayemi Cardoso described the reserve growth as a positive signal for the economy.
According to him, the current reserve position continues to strengthen investor confidence while helping to support stability in the foreign exchange market.
Cardoso had earlier urged Nigerians not to panic over temporary fluctuations in reserve figures, noting that short-term movements are common in modern financial markets.
“In fact, what concerns me is not so much the decline in reserves, but the reaction to relatively small swings in the numbers,” the CBN governor said during a briefing after the International Monetary Fund (IMF) Spring Meetings in April.
Nigeria’s external reserves have experienced mixed movements in recent months.
Earlier reports showed reserves declined from above $50.08 billion in March to $49.61 billion later in the month, while another report indicated a drop of about $855 million within five weeks.
Despite the fluctuations, the broader outlook remains positive following ongoing foreign exchange reforms introduced by the Central Bank under President Bola Ahmed Tinubu’s administration.
The apex bank has repeatedly maintained that the reforms are designed to restore investor confidence, improve liquidity, and stabilize the naira over the long term.
In January 2026, reserves also recorded a similar improvement, increasing by roughly $509 million within 22 days due to stronger foreign exchange inflows.
The CBN had previously projected that Nigeria’s external reserves could rise to as much as $51 billion before the end of 2026 as part of its wider macroeconomic stabilization strategy.
With the latest rebound, analysts say attention will now shift to whether the country can sustain the momentum amid global economic uncertainty and ongoing pressure on emerging market currencies.
