- Nigeria’s external reserves have grown impressively in three months
- The external reserves, which stood at around $38 billion at the beginning of the year, rose to $42.8 in February before hitting the new high of $46 billion in April, CBN data reveals
- The apex bank attributes the growth to the discouragement of unnecessary importation, among other numerous factors
As the price of crude oil at the international market continued to move closer to $70 per barrel, Nigeria’s external reserves have continued to accrue rising by more than 19% in three months period.
Leadership reports that latest data by the Central Bank of Nigeria (CBN) showed that the 30 days moving average of the reserves increased by 19.6% from January up to April 4, 2018.
The 30 days moving average figure currently stands at $46.554 billion up from $38.912 billion which it was at the beginning of the year.
Legit.ng gathered that oil price at the international market has increased slightly beyond $69 per barrel by the close of business last week.
The reserves had grown by about $7.6 billion between January and March 2018.
The reserves at the beginning of 2018 reportedly stood around $38 billion then rose to $42.8 in February before hitting the new high of $46 billion.
Acting director, corporate communications department, CBN, Isaac Okorafor, had last month announced that the reserves had crossed the $46 billion mark.
Okorafor attributed the continued accretion to the country’s reserves to the apex bank’s effort at vigorously discouraging unnecessary importation and reducing the nation’s import Bill; inflow from oil and non-oil exports, as well as the huge inflows through the investors and exporters window of the foreign exchange market, which he said had attracted over $33 billion since April 2017, when it was created.
According to him, the bank’s interventions in the foreign exchange window had also helped to moderate the pressure on the forex reserves by sustaining liquidity in the market and boosting production and trade.
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Okorafor also noted that the CBN policy restricting access to forex from Nigeria’s foreign exchange market to importers of some 41 items had made a huge impact on the status of Nigeria’s reserves and boosted the supply of local substitutes for imported goods, created jobs at home and enhanced the incomes of farmers and local manufacturers.
Meanwhile, Legit.ng had previously reported that the Debt Management Offices (DMO) on Wednesday, March 14, confirmed that as at December 31, 2017, Nigeria’s total public debts stood at N21.725 trillion.
Patience Oniha, the director-general of DMO, who disclosed this at a media briefing in Abuja said of the amount, federal government’s domestic debt was N12.589 trillion, while that of states and the Federal Capital Territory (FCT) amounted to N3.348 trillion.
The total external debt of both the federal government and states was an equivalent of N5.787 trillion. The figures released show that Nigeria’s Debt Management Strategy, which has the objective of reducing the ratio of Domestic Debt in the portfolio, while the ratio of External Debt is increased – with a target of 60% Domestic and 40% External, is being achieved.
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