Nigeria’s Foreign Reserves Drop by $499 Million in Two Weeks Amid Policy Shifts

|By Babatunji Wusu

Nigeria’s foreign reserves have declined by $499.46 million, falling from $50.02 billion to $49.53 billion within a two-week period.

Data released by the Central Bank of Nigeria (CBN) shows that the drop occurred between March 11 and March 25, 2026, representing an approximate 1 percent decline in the country’s external reserves.

The latest figures come as the Naira exchanged at N1,383.88 to the dollar as of Thursday, reflecting continued pressure on the foreign exchange market.

The current reserve level falls short of the projection earlier made by the CBN Governor, Olayemi Cardoso, who had forecast that Nigeria’s reserves would rise to $51.04 billion in 2026, up from $45.01 billion recorded in 2025.

“The external reserves are projected at US$51.04 billion in 2026, compared with US$45.01 billion in 2025,” Cardoso had stated during the 2026 Macroeconomic Outlook.

The decline comes at a time when the apex bank is rolling out major policy reforms aimed at stabilising the financial system and improving foreign exchange inflows.

Among the recent measures, the CBN directed International Money Transfer Operators (IMTOs) to route transactions through designated Naira settlement accounts, a move expected to enhance transparency and liquidity in the forex market.

In addition, the bank reversed its earlier cash pooling policy for international oil companies, now allowing them to fully repatriate export earnings, a decision aimed at boosting investor confidence and encouraging inflows into the economy.

Analysts say the impact of these reforms will be closely monitored in the coming months as Nigeria seeks to strengthen its external reserves and stabilise the Naira.