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Nigeria’s Foreign Reserves Drop to $33.2 Billion, Extending Decline


Nigeria’s gross foreign reserves declined to $33.2 billion as of September 11, down from $33.95 billion at the end of August, the Central Bank of Nigeria (CBN) reported.

The dip extends the downward trajectory in reserves this year amid growing challenges in forex supply. Reserves had risen marginally by $2 million in August, which was the first increment since July 2022.

The declining reserves contrast with the CBN’s reported figure of $37.09 billion at the end of 2022. Financial services firm JPMorgan previously estimated the reserves were only $3.7 billion as of December 2022.

The discrepancy triggered President Bola Tinubu to appoint a special investigator in July to probe the CBN’s reserves accounting. The investigation is ongoing.

Meanwhile, Nigeria continues to grapple with foreign exchange shortages and a backlog of forex demand, prompting CBN Acting Governor Folashodun Shonubi to promise clearance of the backlog within two weeks.

The declining reserves highlight lingering forex liquidity issues despite repeated CBN interventions. Analysts say boosting dollar inflows through exports and foreign investments is key to building reserves and exchange rate stability.



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