Nigeria's foreign reserves shed $90m in five days, reversing October gains

Nigeria's foreign reserves dropped by $90 million in five days to $55.13 billion on November 5, erasing nearly a third of October's $295.35 million gain, according to CBN data. The 0.16% decline brought reserves down from $55.22 billion on October 30.

The dip coincides with the naira at ₦1,346.80/$ as of November 6, though the currency has strengthened 6.26% year-on-year. Crude oil prices remain below $100, limiting dollar inflows—Brent crashed nearly 2% this week after geopolitical tensions eased.

October's reserve buildup had been driven by improved oil receipts and FX market reforms. This reversal suggests the external account remains vulnerable to oil price swings and capital flow volatility. The CBN has not specified drivers for the five-day decline.

Why it matters: Reserve levels determine the CBN's capacity to meet import demand, service debt, and stabilize the naira. A sustained drawdown could tighten FX liquidity, affecting importers, manufacturers, and anyone planning dollar-denominated expenses.

With oil below $100 and global rates elevated, the policy trade-off sharpens: rebuild reserves or defend the exchange rate? The CBN's next moves will signal which priority wins.

If reserves keep falling, will you hedge dollar exposure now or bet on the naira's year-on-year strength holding?

SOURCE: https://dailypost.ng/2026/11/09/nigerias-foreign-reserves-drop-by-90m-in-five-days-to-55-13bn/