Nigeria's foreign exchange reserves fell 15 per cent to $34.57 billion by October 5 compared to $40.75 billion at the same time a year earlier, according to the Central Bank of Nigeria (CBN).

The reserves have been declining, shedding 7 per cent from the middle of last month to the end of the month.

CBN has always explained that the increase or decrease of the reserves is a function of inflow and outflow.

Central Bank governor Sanusi Lamido Sanusi said at the last monetary Policy Committee meeting in Abuja that, "The current external reserves level is still adequate and is expected to remain robust in view of the favorable outlook for oil prices and output."

Nigeria's foreign reserves attained its highest of $64 billion in August 2008 when the international oil price reached $164 per barrel.

The reserves have been under pressure since last month when the naira fell to its lowest level in 13 months. It has since firmed on support from the Central Bank.

CBN said the reserves can finance more than 16 months of imports for the country. More than 80 per cent of the country's basic needs are sourced from abroad.