Nigeria’s foreign reserves have declined by $359.91 million in just one week, falling from $40.91 billion on January 7, 2025, to $40.56 billion by January 13, 2025, according to data from the Central Bank of Nigeria (CBN).
This significant drop highlights the country’s ongoing economic struggles, including rising inflation, declining investor confidence, and persistent fiscal instability.
Analysts warn that the continued depletion of foreign reserves could hinder the CBN’s capacity to stabilize the naira and fund essential imports, further straining households and businesses already grappling with economic hardships.
Foreign reserves are critical to shielding a nation’s economy from external shocks, maintaining liquidity for international trade, and fostering investor confidence.
However, Nigeria’s reserves have come under increasing pressure due to fluctuating global oil prices, reduced export inflows, and surging demand for foreign exchange.
This decline underscores the fragility of the nation’s economy and the urgent need for strategic reforms to restore fiscal stability. Economists suggest that Nigeria must diversify its revenue sources, improve export performance, and implement policies to attract foreign investments to reverse this downward trend.
The development comes amid rising living costs and persistent unemployment, intensifying the economic burden on Nigerians.
Addressing these challenges will require a combination of fiscal discipline, structural reforms, and innovative economic policies to steer the country toward recovery.
(Nairametrics)
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