Nigeria’s external reserves have staged a strong comeback after weeks of pressure, with fresh Central Bank of Nigeria (CBN) data showing a $551 million increase within the first three weeks of May 2026.
According to figures released by the apex bank, gross external reserves rose from $48.34 billion on May 4 to $48.89 billion as of May 21, reversing the steady decline recorded throughout April.
The recovery follows a difficult period marked by persistent foreign exchange interventions, external debt payments, and broader global market pressures that pushed reserves downward for most of April.
CBN data showed reserves stood at $49.18 billion on April 1 before slipping to $48.94 billion by April 7. By April 17, the figure had dropped further to $48.63 billion, eventually closing the month at $48.36 billion.
May, however, brought renewed momentum, with reserves climbing steadily and restoring more than half a billion dollars within weeks, a development seen as a positive signal for Nigeria’s external liquidity position and investor confidence.
Speaking after the latest Monetary Policy Committee (MPC) meeting, CBN Governor Olayemi Cardoso said the reserve position continues to strengthen confidence in the economy and support exchange rate stability.
“This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability,” Cardoso stated.
The governor had earlier urged caution against overreacting to short-term reserve fluctuations during a press briefing after the International Monetary Fund (IMF) Spring Meetings in April.
“In fact, what concerns me is not so much the decline in reserves, but the reaction to relatively small swings in the numbers, which in today’s market environment should not trigger anxiety,” he said.
Nigeria’s reserves have witnessed sharp swings in recent months. Earlier reports showed reserves declined from above $50.08 billion on March 12 to $49.61 billion by March 23, while another report noted an $855 million decline within five weeks before the latest rebound.
Still, the country has also recorded periods of recovery. In January 2026, reserves increased by about $509 million within the first 22 days of the year due to improved foreign exchange inflows.
The recent rebound aligns with broader foreign exchange reforms introduced by the Central Bank as part of ongoing efforts to stabilize the economy and rebuild market confidence. The apex bank has projected that reserves could reach $51 billion by the end of 2026.
Nigeria’s reserve history has long reflected periods of short-term volatility. In October 2018, reserves dropped by $1.1 billion within two weeks, highlighting the sensitivity of external buffers to changing market conditions.
For now, May’s rebound offers renewed confidence that Nigeria’s external position remains resilient despite recent pressures.
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