Lagos, Nigeria – Fitch Ratings has projected that Nigeria’s foreign exchange reserves will decline to $47 billion (approximately N73.3 trillion) by the end of 2026, despite ongoing reforms aimed at stabilising the economy, while affirming the country’s Long-Term Foreign Currency Issuer Default Rating at ‘B’ with a Stable Outlook.
Okay News reports that Fitch noted that gross foreign exchange reserves rose to $49.4 billion at the end of March 2026, from $32 billion in mid-April 2024, but forecast a marginal decline to $47 billion at end-2026, reflecting higher spending pressures and external risks. However, the agency expects reserves to cover seven months of current external payments, well above the ‘B’ median of 4.3 months.
The rating agency stated that recent Central Bank of Nigeria reforms have supported market normalisation and relative naira stability, but warned that fiscal pressures and external vulnerabilities could drive modest currency depreciation in the near term. Fitch highlighted structural challenges including a projected budget deficit of nearly 5 percent of GDP in 2026, with revenue expected to remain below the ‘B’ category average at about 11 percent of GDP.
Inflation is forecast to average 16 percent in 2026, down from 23 percent in 2024, while real GDP growth is expected to remain steady at 4.1 percent, supported by oil sector expansion. This external reserves forecast underscores the delicate balance between reform-driven gains and ongoing fiscal pressures facing Nigeria’s economy.
 by the end of 2026, despite ongoing reforms aimed at stabilising the economy, while affirming the country's Long-Term Foreign Currency Issuer Default Rating at 'B' with a Stable Outlook.){kind=link}