Nigeria’s Foreign Reserves Hit Six-Year Low at $32 Billion

Nigeria’s foreign exchange reserves have plummeted to $32.29 billion as of April 15, marking the lowest level in over six years, according to recent data released by the Central Bank of Nigeria (CBN).

Analysis reveals a significant decline from $34.44 billion, the peak in 2024 recorded on March 18, to the current figure. This represents a $2.15 billion drop, equivalent to a 6.26 percent decrease.

The recent downturn follows a period of consistent growth observed between February 5 and March 18, during which the FX reserves surged by $1.28 billion.

The CBN had previously attributed the reserve growth to increased remittances from Nigerians abroad and heightened foreign investor interest in local assets, particularly government debt securities.

The last time Nigeria’s foreign reserves were at this level was on September 9, 2017, when the CBN reported a figure close to the current $32.29 billion mark.

The decline in reserves coincides with CBN’s intervention in the parallel market aimed at stabilizing the FX rate. Notably, on February 27, the apex bank provided $20,000 to each bureau de change (BDC) operator at a rate of N1,301/$. Subsequent interventions occurred, with the second tranche at N1,251/$ and the third tranche at N1,101/$.

Despite these efforts, the naira appreciated against the dollar in the parallel market, rising from N1,900 per dollar on February 21 to N1,100/$ on April 13. Similarly, at the official window, the local currency strengthened to N1,136.04/$ from N1,551.24/$ over the same period.