Nigeria’s external reserves posted a steady decline through April 2026, shedding close to $1 billion over the month.
The development could heighten pressure on the foreign exchange market despite the country’s still robust reserve position, Pinnacle Daily can report.
According to data from the Central Bank of Nigeria (CBN), gross external reserves fell consistently day after day, opening the month at $49.18 billion on April 1 and closing at $48.37 billion by April 29.
The drawdown of about $813 million marks a continuation of the downward trend that began at the end of March, when reserves stood at $49.24 billion.
The decline, which was gradual but unbroken, shows that, by the end of the first week, reserves had slipped to $48.94 billion, before easing further to $48.68 billion, and settling lower toward month-end without recording a single day of recovery within the period under review.
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Analysts at Commercio Partners said the sustained drop points to mounting pressure in the foreign exchange (FX) market, warning that demand for dollars is outpacing supply.
“A $731 million drawdown in three weeks signals that dollar supply is being absorbed faster than it is replenished,” the firm said.
It stated further that this dynamic could “weaken confidence in the naira and increase demand for hedging through forwards, swaps, and dollar-linked assets.”
The composition of the reserves remained largely stable, as liquid assets continued to dominate, accounting for $47.64 billion as of April 29, while blocked funds stood at $729.9 million, representing 1.51 per cent of total reserves.
The blocked portion fluctuated only marginally during the month, briefly ticking up to 1.52 per cent before returning to its prior level.
Despite the monthly decline, Nigeria’s reserves position remains significantly stronger compared to previous years.
At $48.37 billion, April 2026 represents the highest reserve level recorded for the month in recent years, compared to $37.93 billion in April 2025 and $32.25 billion in April 2024.
However, Commercio Partners cautioned that even modest reserves depletion could influence investor sentiment.
“Foreign portfolio investors may become more cautious because reserve depletion reduces the perceived buffer available to support FX liquidity and external payments,” the firm said.
While the current reserves level remains substantial, the firm noted that projections by Fitch Ratings suggest reserves could moderate further toward $47 billion by the end of 2026, underscoring the delicate balance between sustaining FX stability and managing external buffers.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X