External Reserves Decline By $731m In April Drawdown 

By Charles Ebi

Nigeria’s external reserves declined by approximately $731 million during the first three weeks of April 2026, falling from $49.18 billion on April 1 to $48.45 billion by April 23. This drawdown represents an average weekly loss of about $233 million and extends a broader downward trend that began in mid-March reflecting continued pressure on the country’s foreign exchange buffers.

Data from the Central Bank of Nigeria ,CBN, shows reserves fell from $49.18 billion on April 1 to $48.45 billion as of April 23, representing an average weekly decline of about $233 million.

The latest movement extends a broader trend of reserve drawdowns, demonstrating the pressure on monetary authorities as they balance exchange rate stability, liquidity management and external commitments.

Despite the recent dip, reserve levels remain significantly higher than the same period in 2025 (~$37.83 billion).

Recently the CBN Governor Olayemi Cardoso has described the fluctuations as “normal” under a liberalized FX framework, stating that Nigeria’s buffers are still well above recommended minimums and should not be a cause for concern.

The CBN maintains a target of $51.04 billion by the end of 2026, supported by expected increases in oil earnings, diaspora remittances, and domestic refining capacity

Reserve movements show the sharpest decline occurred in the early part of the month, before moderating in the latter half of April.

Reserves dropped from $49.18 billion to $48.81 billion between April 1 and April 10, reflecting stronger outflows.

Between April 13 and April 17, reserves eased further from $48.72 billion to $48.62 billion, suggesting a slower pace of decline.

From April 20 to April 23, reserves slipped marginally from $48.54 billion to $48.45 billion, indicating relative moderation in outflows.

The early-month drawdown may have reflected stronger foreign exchange interventions and settlement of external obligations, while the later slowdown could point to reduced intervention intensity or some improvement in inflow support.

The April decline follows reserve pressure recorded in March, reinforcing concerns over sustained external liquidity management.

Reserves had declined from above $50.08 billion on March 12 to $49.61 billion by March 23.

Despite the recent decline, reserve levels remain significantly above the same period in 2025, when external reserves stood at around $37.83 billion.

In January 2026, reserves rose by about $509 million within the first 22 days, signalling improved inflows at the time.

The recent decline represents a reversal of that earlier upward trend.

In October 2018, reserves dropped by $1.1 billion within two weeks, highlighting a pattern of short-term fluctuations.

These movements are typically driven by a mix of oil revenue changes, FX interventions, and external obligations.

Prior to the reforms introduced under President Bola Tinubu, Nigeria operated a tightly managed foreign exchange regime in which the central bank played a dominant role in supplying foreign currency and maintaining multiple exchange rate windows.

Despite the recent dip, the Central Bank of Nigeria maintains an optimistic outlook for the country’s external reserves.

The apex bank had previously projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.

The $51 billion projection forms part of a medium-term strategy to strengthen balance-of-payments resilience