Data from the Central bank of Nigeria (CBN) shows that Nigeria’s external reserves dropped to $37.9 billion as of Wednesday, October 12, 2022, from $38.8 billion on September 12 2022.1 The decline is due to CBN’s continuous intervention in the exchange rate market and dwindling export earnings. There has been an increase in the demand for foreign exchange for importing inputs and finished products. Likewise, there has been a rise in the number of Nigerians moving to other countries for studies and work. These result in a demand-supply deficit pushing the exchange rate to an all-time high at different windows. The CBN has been intervening to minimise the rate of increase, leading to a trend of steady declines in foreign reserves since the beginning of September 2022. While it is prudent to intervene by pumping more forex from the external reserve, it is also essential, for sustainability, that government strive to boost export earnings to ensure more accretion into the reserve. As a result, the government needs to strengthen reforms to increase non-oil exporting firms’ productivity and competitiveness in the international market.