Nigeria’s foreign exchange reserves have rebounded strongly in May 2026, rising by approximately $551 million after sustained pressure throughout April, according to data released by the Central Bank of Nigeria.
Gross external reserves climbed from $48.34 billion on May 4 to $48.89 billion as of May 21, signalling a meaningful recovery in the country’s external liquidity position and renewed confidence in its foreign exchange market.
The rebound comes after a difficult April, during which reserves came under considerable strain from a combination of FX interventions, external debt repayments, and broader global market pressures. The CBN’s periodic interventions in the currency market, designed to stabilise the naira, alongside obligations to foreign creditors, had weighed heavily on the reserve buffer during that period.
The May recovery suggests those pressures have eased, at least in the short term. Analysts will likely view the increase as a positive signal for Nigeria’s ability to meet its international financial obligations and defend currency stability going forward.
Nigeria’s external reserves serve as a critical buffer for the economy, providing the CBN with the firepower needed to manage exchange rate volatility and reassure foreign investors of the country’s financial resilience. A sustained recovery in reserve levels would bolster confidence in the naira and support the broader macroeconomic stability agenda the CBN has been pursuing.
The Central Bank is yet to provide a detailed breakdown of the factors driving the May rebound, but market watchers will be monitoring reserve levels closely in the weeks ahead for signs that the recovery is holding.
