Early-month outflows drive decline as central bank maintains $51bn year-end target…..
Nigeria’s external reserves have recorded a noticeable dip in April, reversing earlier gains and raising fresh questions about short-term liquidity trends though authorities insist there is no cause for alarm.
Latest figures from the Central Bank of Nigeria show that reserves declined from $49.18 billion on April 1 to $48.45 billion as of April 23, marking a drop of $731 million within just three weeks. This translates to an average weekly decline of roughly $233 million.
The downturn interrupts a period of steady buildup and reflects the complex interplay of factors such as fluctuating oil revenues, foreign exchange interventions, and the country’s external financial obligations.
Despite the slide, CBN Governor Olayemi Cardoso has downplayed concerns, expressing confidence in the broader outlook. He reiterated the apex bank’s projection that reserves could climb to $51 billion by the end of 2026, as part of ongoing efforts to stabilise the economy and rebuild investor confidence.
A closer look at the data reveals that the sharpest decline occurred at the start of the month. Between April 1 and April 10, reserves fell significantly from $49.18 billion to $48.81 billion, suggesting stronger outflows during that period.
The pace of decline, however, began to ease in the following weeks. From April 13 to April 17, reserves slipped more gradually from $48.72 billion to $48.62 billion. This moderation continued toward the end of the review period, with a marginal drop from $48.54 billion on April 20 to $48.45 billion by April 23.
The April decline comes on the heels of similar pressure in March, when reserves fell from over $50.08 billion on March 12 to $49.61 billion by March 23, underscoring ongoing challenges in external liquidity management.
Even so, current reserve levels remain significantly stronger than a year earlier. In the corresponding period of 2025, Nigeria’s reserves stood at around $37.83 billion, highlighting a notable year-on-year improvement.
Earlier in the year, the country saw encouraging inflows, with reserves rising by approximately $509 million within the first 22 days of January 2026.
Historical patterns also suggest that such movements are not unusual. For instance, in October 2018, reserves dropped by $1.1 billion within a two-week span, illustrating the often volatile nature of external reserve dynamics.
While the recent dip may signal short-term pressures, the CBN appears focused on its medium-term strategy aimed at strengthening the country’s balance of payments and ensuring greater resilience against external shocks.
