220
Daniel Adaji
Nigeria’s foreign exchange reserves hit $38.38bn on May 16, 2025, showing a slow recovery from months of decline.
This is according to Data from the Central Bank of Nigeria (CBN) which shows a steady climb from the April balance of $37.93bn.
Between May 2 and May 16, the reserves increased by close to $1bn. The Daily data shows consistent growth: $38.01bn on May 8, $38.12bn on May 12, and $38.38bn by May 16.
Nigeria’s reserves were above $409bn in January however, external debt servicing, falling oil revenues, and global financial pressures caused the dip. The lowest point came in late April when reserves hit $37.8bn.
Fitch Ratings recently raised Nigeria’s Long-Term Foreign-Currency Issuer Default Rating from ‘B-‘ to ‘B’. This shows a stronger external liquidity and a recovery in foreign reserves but the firm warned that about 30 per cent of the reserves are committed to foreign exchange bank swaps, which limits the country’s access.
This recovery is coming at a time when investors are expecting outcomes from the CBN’s Monetary Policy Committee (MPC) meeting scheduled to be held on May 19 and 20 to set the tone for Nigeria’s financial direction.
Top of the discussion at the meeting will include inflation control, exchange rate stabilization, and strategies for sustaining the current upward momentum in reserves.
The foreign reserves trend will likely influence decisions at the MPC meeting, especially as the country faces both domestic pressures and global market uncertainties.