Fresh data obtained from the Central Bank of Nigeria (CBN) has shown that Nigeria’s external reserves declined by $521.22m in five weeks.
According to CBN’s data on movement in reserves, the external reserves stood at $33.396bn as of October 31, 2023, but fell to $32.875bn as of December 7, 2023, representing a decline of $521m.
This depletion can be traced to the country’s declining earnings from crude oil which accounts for a large chunk of the country’s forex earnings.
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A few days ago, the Governor of the apex bank, Olayemi Cardoso at the Chartered Institute of Bankers of Nigeria’s 58th Annual Bankers’ Dinner and Grand Finale of the Institute’s 60th anniversary had bemoaned the continuous decline in Nigeria’s crude oil production which had further weakened the already inadequate economic diversification.
“This has led to a decline in government revenue and foreign exchange inflows, while simultaneously witnessing a growth in public expenditures and a deterioration in macroeconomic indicators, which has constrained our policy options. Consequently, we have seen the fiscal deficit and public debt increase, placing additional strain on external reserves and contributing to exchange rate instability.”
The CBN had earlier revealed that the reserves which commenced January 3, 2023, at $37.07bn fell to $33.237bn as of September 29, 2023.