Foreign Reserves Drop $840m In 13 Days Amid Steady Naira, Oil Price Boost

Nigeria’s foreign reserves dropped by $840 million over 13 straight days to $49.18 billion, even as the naira held relatively steady in a shortened trading week and crude oil prices firmed.

Data from the Central Bank of Nigeria (CBN) showed the naira strengthened slightly by N3.09 to N1,380.79/$ on Thursday, the final session before Easter, up 0.22 per cent from N1,383.88 a week prior on the Nigerian Foreign Exchange Market (NFEM).

Day-on-day, it dipped N2.09 (0.15 per cent) from Wednesday’s N1,378.70/$.

Over the four trading days, the currency gained a slim N2.79 (0.2 per cent) from Monday’s N1,383.58/$, signaling short-term stability amid volatility.

In the parallel market, the naira stayed flat at N1,410/$ on Thursday, shrinking the official-parallel spread to N30 from N32. Weekly and four-day gains were modest at N2 (from N1,412/$) and N5 (from N1,415/$), respectively.

External reserves—key for CBN currency defense—fell for the 13th straight day, shedding $840 million to $49.18 billion as of April 1, down from $50.02 billion on March 11.

This persisted amid Middle East tensions fueling global risk aversion, curbing investor interest in frontier markets like Nigeria and slowing capital inflows. Softer crude production and rising local refinery allocations have limited forex gains from oil exports, with the naira down 1.80 per cent on average in March.

U.S.-Iran strains have further dampened portfolio flows, offsetting some positives.

FMDA analysts estimated that CBN sold $700 million in early March to manage liquidity, contributing to the reserves dip. The bank also navigated money market shifts, with N572.6 billion in Open Market Operations bills issued versus N1.68 trillion maturing in mid-March—prompting potential foreign outflows as investors repatriate funds. Debt servicing added further pressure.

CBN insists reserves fluctuate with routine operations, not weakness, and stands ready to intervene for market stability amid global headwinds.