Nigeria’s foreign exchange reserves dropped by $2.57 billion, or 6.29%, in the first quarter of 2025, primarily due to foreign debt servicing, the Central Bank of Nigeria (CBN) revealed.
According to the CBN’s data, reserves stood at $40.88 billion in January but fell to $39.72 billion by the end of the month.
This downward trend continued into February and March, where reserves declined to $38.42 billion and $38.31 billion, respectively.
The CBN attributed the drop to significant foreign debt payments, with $540 million spent in January and $276 million in February. “Reserves have continued to strengthen in 2025.
While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact,” the CBN stated.
Despite the decline, the CBN remains optimistic, citing improvements in oil production and rising non-oil foreign exchange earnings as factors that may support a recovery in reserves in the second quarter of 2025.
