The Naira has taken a hit, weakening to N1,389 per dollar, amidst a decline in Nigeria’s external reserves by approximately $850 million within three weeks.
According to data from the Central Bank of Nigeria (CBN), the country’s external reserves fell to $49.18 billion between March 11 and April 2, 2026, reversing earlier gains.
The Naira’s decline is attributed to global currency volatility triggered by geopolitical developments and shifting investor sentiment. Intraday trading showed the currency fluctuating between N1,381/$ and N1,390/$, with an average rate of N1,386.3/$.
The CBN’s efforts to stabilize the Naira and manage exchange rates have contributed to the decline in reserves.
Forex traders attribute the drop to increased government spending and foreign exchange pressures linked to the election cycle.
The decline in reserves has raised concerns among market participants about the sustainability of reserve growth, despite earlier positive momentum.
Nigeria’s external reserves had recently reached a multi-year high, rising to $50.45 billion as of February 16, 2026.
