Nigeria's Foreign Reserves Slip to $55.09B, Ending Nearly Three Months of GainsNigeria's Foreign Reserves Slip to $55.09B, Ending Nearly Three Months of Gains
Key Highlights
- Central Bank of Nigeria data show gross reserves at KSh 7.16T ($55.09B) on 14 October, down about KSh 1.30B ($10M) from the previous day.
- It is the first fall since 28 July, when reserves stood at KSh 6.75T ($51.94B), and follows a rise of about KSh 409.31B ($3.15B) since that low.
- Fitch Ratings projected in April that reserves could fall to KSh 6.11T ($47B) by the end of 2026, so the next weeks of data will test whether the build-up holds.
Nigeria's foreign exchange reserves have dipped for the first time in nearly three months, falling to KSh 7.16T ($55.09B) on 14 October from KSh 7.16T ($55.1B) a day earlier, according to Central Bank of Nigeria data reported by The ICIR
The fall of about KSh 1.30B ($10M) is small, but it breaks a run of gains that has steadied the naira and supported foreign investors' interest in Nigerian assets, including Treasury bills and the Dangote refinery share offer. Reserves are the central bank's main buffer for meeting import bills, debt payments and pressure on the currency.
A three-month build-up
The last decline came on 28 July, when reserves stood at KSh 6.75T ($51.94B). They edged lower again to KSh 6.75T ($51.92B) on 30 July before turning up in August, reaching KSh 6.78T ($52.14B) on 10 August and KSh 7.16T ($55.1B) by 13 October.
That leaves reserves about KSh 409.31B ($3.15B) above the late-July level. The ICIR links the rise to the central bank's reforms of the foreign exchange market, aimed at improving liquidity and confidence in the naira.
The naira traded at ₦1,331.61 to the dollar on the official market on 15 October, little changed on the day and about 9.72% stronger than at the end of 2025.
One day is not a trend
A single marginal fall does not show that reserves are turning down. Daily figures move with debt payments, oil receipts and central bank sales of dollars to the market.
The wider outlook is less certain. Fitch Ratings projected in April that reserves could fall to KSh 6.11T ($47B) by the end of 2026, and The ICIR notes that the recent increase may not last if inflows slow or payments rise.
Why it matters beyond Lagos
For Kenyan and other African investors, Nigeria's reserve position is a guide to how safely money can move in and out of its markets. Nigerian Treasury bills pay far more than Kenyan ones, with the one-year rate at 15.90% at the latest auction, as Mwenendo reported in its coverage of Nigeria's bill sale, but those returns depend on the naira holding steady.
Further weekly data from the central bank will show whether the 14 October dip was a pause or the start of a slide.
In Summary
- What happened to Nigeria's reserves?
- Gross reserves fell to KSh 7.16T ($55.09B) on 14 October from $55.1B the day before, a drop of about $10M.
- When did reserves last fall?
- On 28 July, when they stood at KSh 6.75T ($51.94B).
- Why does it matter?
- Reserves back the naira and Nigeria's ability to meet external payments, which affects foreign investors in its bills and shares.