By Jemimah Wellington, JKNewsMedia Reporter
NIGERIA’s FOREIGN reserves fell below the critical $40 billion mark for the first time since June 2024, dropping to $39.991 billion on 23 January 2025.
This marked a decrease from $40.035 billion recorded on 20 January 2025, according to data from the Central Bank of Nigeria (CBN).
Economic analysts have expressed concern over the decline, attributing it to the nation’s rising foreign debt and persistent challenges in the foreign exchange market.
Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the growing debt burden as a major factor behind the dwindling reserves.
Weeks earlier, the CBN governor announced that Nigeria’s external reserves had crossed the $40 billion threshold, sparking optimism about the country’s economic recovery. However, the recent drop underscores ongoing vulnerabilities in the economy.
Despite the dip, the Naira showed resilience, appreciating to N1,531.20 per dollar at the close of work on Friday.
Analysts suggest this may offer temporary relief to businesses and consumers who depend on imports for goods and services.
The external reserves are a key determinant of Nigeria’s ability to stabilise the foreign exchange market, finance imports, and manage external debt obligations.
This recent decline reflects a reversal in what had been months of relative stability, prompting calls for urgent measures to safeguard the country’s financial standing.
Economic stakeholders said they would continue to urge the federal government and the CBN to implement policies that enhance foreign exchange inflows, including boosting non-oil exports and reducing reliance on external borrowing.
