More hard times lies ahead as Nigeria’s foreign reserve dropped by $359.91 million in just one week according to figures released by the Central Bank of Nigeria Wednesday.
As of January 13, 2025, the country has $40.56 billion in its reserve compared to $40.91 billion recorded on January 7, 2025. The drop is caused by rising inflation and low investor confidence in the economy.
According to the CBN data on December 31, 2024, Nigeria’s foreign reserves stood at $40.88 billion, demonstrating a relatively stable position as the country entered the new year.
Early January saw a modest uptick in reserves, with the level reaching $40.92 billion on January 6, 2025. This increase, however, was short-lived as reserves peaked at $40.91 billion on January 7.
The decline began immediately afterwards, signaling a persistent downward trajectory. By January 13, reserves had fallen by 0.88 per cent from their January 7 peak, representing a loss of $351.89 million within six days.
On January 8, the reserves dropped to $40.85 billion, reflecting a daily reduction of $60.31 million. This marked the start of a steady erosion of the gains achieved late last year and earlier in the month this year. The downward trend continued on January 9, when reserves dipped further to $40.80 billion, a daily drop of $49.15 million. By January 10, reserves declined more sharply to $40.75 billion, losing $50.35 million compared to the previous day.
The most significant decline occurred between January 10 and January 13, when reserves fell to $40.56 billion. This three-day period saw a cumulative loss of $192.39 million, highlighting a consistent and troubling pattern of depletion. Overall, the reserves experienced a 0.88 per cent decline in one week, raising questions about the factors driving the losses and their implications for the economy.
