Fitch Ratings has projected that Nigeria’s foreign exchange reserves will decline to $47 billion by the end of 2026, despite ongoing reforms aimed at stabilising the economy.

The rating agency affirmed Nigeria’s Long-Term Foreign Currency Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook.

Fitch stated that the rating reflects Nigeria’s large economy, liquid domestic debt market, and improvements in its monetary and exchange rate framework.

Fitch noted that while reserves have strengthened significantly in recent months, they are expected to face pressure.

Gross FX reserves rose to $49.4 billion at the end of March 2026, from $32 billion in mid-April 2024.

The agency forecasts a marginal decline to $47 billion at end-2026, reflecting higher spending pressures and external risks.

However, Fitch expects reserves to cover seven months of current external payments, well above the ‘B’ median of 4.3 months.

The agency added that recent Central Bank of Nigeria reforms have supported market normalisation and relative naira stability.

Fitch, however, warned that fiscal pressures and external vulnerabilities could drive modest currency depreciation in the near term.

Gross reserves had risen to $50.45 billion in February 2026, the highest level in over a decade, providing an import cover of 9.68 months for goods and services according to the CBN. However, reserves declined to $48.85 billion as of April 9, 2026.