Nigeria’s foreign reserves fell by $2.55 billion in the first quarter (Q1) of 2025, marking the sharpest decline for the period in five years. Data from the Central Bank of Nigeria (CBN) revealed that reserves dropped by 6.23%, from $40.88 billion on January 2 to $38.33 billion by March 27, raising concerns over external economic pressures.
A comparative analysis showed that the Q1 2025 depreciation surpassed previous years, with reserves falling by $810.66 million (2.45%) in Q1 2024, $1.57 billion (4.24%) in Q1 2023, and $827.34 million (2.32%) in Q1 2022. The sustained decline highlights growing challenges in maintaining external liquidity amid global and domestic economic uncertainties.