Nigeria’s gross external reserves have surged to N38.38 billion, signalling a modest improvement in Nigeria’s external buffer after a period of decline.
Olayemi Cardoso, CBN governor, stated after the Monetary Policy Committee (MPC) meeting on Tuesday, that recent monetary measures are beginning to yield results.
He noted that the rise in the reserves reflects growing investor confidence, which has also contributed to the naira’s relative stability, currently trading between N1,590/$1 and N1,610/$1 this year.
According to data from the CBN, Nigeria’s external reserve began the year on a positive trajectory, exceeding $40 billion in January 2025. The highest point was recorded on January 20, when the reserves reached $40.15 billion.
However, by February, the reserves began to decline. As of February 18, it had fallen to $38.82 billion, losing over $1.3 billion within one month.
The loss continued in March, falling to $38.35 by March 7. It stood at $38.57 by March 20 and fell further down to $38.31 billion by March 28, pointing to a loss of $260 million in less than two weeks.
This decline was largely driven by falling global oil prices, external debts, and increased demand for foreign exchange.
Throughout April, the reserve remained below $38 billion. It grew slightly to $38.08 billion by April 10, before dipping again to $37.79 billion on April 25.
Recent data from the CBN, however, revealed that the external reserve began its rebound on May 9, rising to $38.12 billion, and then to $38.21 billion by May 12. By May 16, it stood at $38.38 billion May 16, representing a $260 million increase in just one week.
