Central Bank of Nigeria (CBN) has reported a decline in the country’s foreign exchange reserves to $55.09 billion on October 14, marking the first drop in nearly three months.
Gatekeepers News reports that the figure dropped from $55.10 billion recorded on October 13, representing a decrease of about $10 million, TheCable reported on Friday, October 16.
The decline ended a period of sustained growth in the country’s external reserves, which had recovered from levels below $52 billion in late July to more than $55 billion in October.
CBN data showed that the last decline before the latest drop occurred on July 28, when the reserves stood at $51.94 billion. The reserves subsequently fell to $51.92 billion on July 30 before beginning a gradual recovery in August.
The recovery continued through the following months, with reserves reaching $52.14 billion on August 10 and rising further to $55.10 billion on October 13.
The latest movement represents a slight reversal in the upward trend recorded during the period.
Foreign exchange reserves are assets held by a country’s monetary authority to support international payments, meet external obligations and help manage pressure on its currency. They also provide a buffer against external economic shocks and fluctuations in foreign currency inflows.
The development comes amid a broader improvement in Nigeria’s external position. Fitch Ratings said in October that stronger reserves, foreign exchange reforms and moderating inflation had contributed to its decision to revise Nigeria’s credit outlook from stable to positive while retaining the country’s long-term rating at ‘B’.
However, Fitch had earlier projected that Nigeria’s external reserves could decline to $47 billion by the end of 2026, citing higher spending pressures and external risks.
